German steelmaker Thyssenkrupp announced that its financial results for the first half ended on March 31 of the financial year 2019-2020 were significantly impacted by the initial effects of the coronavirus pandemic. In addition, the weak automotive market in particular as well as price and volume losses in the materials businesses had a negative impact on performance. In the third quarter, the company expects that its operating loss could go up to €1 billion.
For the given period, the company posted a net loss of €1.1 billion, down from a net loss of €355 million in the first half of the previous financial year, while sales revenues decreased by four percent year on year to €15.9 billion. Meanwhile, the company’s order intake amounted to €15 billion, down eight percent year on year.
The performance of Steel Europe was also characterized by the structurally extremely challenging situation in the steel sector. The overall market slowdown is making itself particularly felt in lower price levels. Demand from the auto industry was already noticeably lower at the beginning of the quarter and slumped further in the second half of March due to the pandemic.
“The coronavirus pandemic presents us with enormous challenges. The full impact of the crisis on our businesses is not yet foreseeable. But it is already clear that the economic disruptions will leave very deep marks. We have made a lot of progress with our transformation in the last few months. The company has delivered. We have sold the elevator business and negotiated and begun implementing the steel strategy,” said Martina Merz, CEO of Thyssenkrupp.