Germany-based steelmaker ThyssenKrupp has announced its financial results for the first half ended March 31 of the financial year 2012-13, registering a net loss of €822 million, mainly due to the impairment charge of €683 million on property, plant and equipment of the company's steel mills in the US and Brazil.
The order intake of ThyssenKrupp in the first half decreased by seven percent to €19.3 billion, while the company's sales revenue amounted to €19.95 billion, decreasing by 14 percent, both compared to the corresponding period of the previous financial year.
ThyssenKrupp stated that it has seen lower sales on year-on-year basis at its European steel business due to disposals and lower selling prices, but showed typical second quarter growth quarter-on-quarter.
The steelmaker also added that it is planning to reduce the workforce at its European steel business by over 2,000, in addition to 1,800 employees affected by plans to sell the grain-oriented electrical steel operation with plants in Gelsenkirchen, Germany and Isbergues, France, and the electrical steel operations in Nashik, India.
ThyssenKrupp expects sales in the second half to be higher than the first half levels, but full year sales revenue is anticipated to decline year on year. The company also expects no major changes in the raw materials markets. ThyssenKrupp said that the sales lost due to portfolio measures at its European steel business will not be fully offset by organic growth in the capital goods businesses.