Largest steel company Thyssenkrupp AG of Germany recorded a sharp rise in net loss in the 2018-2019 fiscal year and warned that it expects even greater losses in the current financial year due to restructuring costs.
according to a press release from the group, the net loss for the 12 months ended 30 September, totalled 304 million euros compared to 62 million euros in the previous fiscal year.
"the Results of many of our units had not been satisfactory," - said the head of ThyssenKrupp Martina Merz, words which are contained in the press release.
Mertz, who led the company last month, added that Thyssenkrupp will continue to implement plans for the sale or listing of the units engaged in the production of elevators, as well as the restructuring of other units.
in addition, Thyssenkrupp announced plans to cut 640 jobs in the division, which provides engineering solutions for various industries. The company also plans to adjust its organizational structure and reduce headcount in its headquarters from 800 to about 430.
it is Expected that these measures will lead to an improvement of operational activities, but it will not happen immediately.
in Addition, the current economic weakness continues to impact negatively on the profitability and therefore the company does not expect that it will reach the medium-term financial goals for 2021, which she established in August 2018, according to a press release.
Given the weak performance of the operational activities and financial situation, Thyssenkrupp announced that the company's Board of Directors will propose not to pay dividends for the 2018/2019 financial year.
In a press release says the company is "cautious" in relation to the forecast for the current fiscal year in connection with economic and geopolitical uncertainty. Investors hope for restoring the balance of the company primarily associated with the sales unit for the production of elevators. Valuation units could reach 17 billion euros.
Thyssenkrupp Group, leading its history since 1842, has more than 460 of subsidiaries and branches in 78 countries, employing more than 160 thousand people. Besides steel business, it manufactures components and systems for the automotive industry, construction machinery, elevators, escalators, components and entire production lines for different industries, plants for the production of cement.
