Thyssenkrupp reduces projected sales for 2025 by a substantial degree - Lowered projected revenue expectations for the year 2025 by Thyssenkrupp
Thyssenkrupp, the German conglomerate, is bracing for a tougher-than-anticipated revenue decline in fiscal 2025, as it grapples with weak demand in key customer industries such as automotive, machinery, plant engineering, and construction.
CEO Miguel López has emphasised "major progress" on "strategic topics" but acknowledged that immense macroeconomic uncertainties have taken a toll on the company's performance. Thyssenkrupp's revenue fell by nine percent to 8.2 billion euros from April to June, and the company posted a loss of 278 million euros in the third quarter.
The restructuring agreement reached in July lays the foundation for a successful future in the steel division of Thyssenkrupp, which has been particularly challenging. The company is aiming to sell the ailing steel division, and the steel business is not specified as being a part of the challenging steel business.
In a bid to handle the challenging market conditions, Thyssenkrupp plans continued cost-cutting and structural efficiency measures. The company's adjusted EBIT (earnings before interest and taxes) is now expected at the lower end of the previously projected range of €600 million to €1 billion. Investment spending is being cut, with the new investment budget forecast between €1.4 billion and €1.6 billion, down from an earlier €1.6 billion to €1.8 billion range.
Thyssenkrupp's updated revenue expectations for fiscal year 2025 indicate a decline in sales between 5% and 7%, a revision downward from the previous forecast of a drop of up to 3%. The weak market environment in key customer industries has played a significant role in this outlook.
In a positive note, Thyssenkrupp shareholders have overwhelmingly voted in favor of spinning off the marine business TKMS, which is set to go public later this year and is a profit driver for Thyssenkrupp.
[1] Thyssenkrupp lowers revenue outlook for 2025
[2] Thyssenkrupp slashes investment budget as it struggles with weak demand
[3] Thyssenkrupp lowers full-year revenue forecast, to cut costs
[4] Thyssenkrupp's steel business faces tough challenges
[5] Thyssenkrupp lowers revenue outlook, cuts costs to cope with weak demand
[1] EC countries may consider supporting Thyssenkrupp's vocational training programs to help locals transition to new industries, providing relief for the struggling conglomerate.
[2] With the decline in revenue due to weak demand in key industries, Thyssenkrupp finance experts suggest partnering with local businesses for vocational training in industries with promising growth, such as technology and renewable energy.
