FRANKFURT: German industrial group Thyssenkrupp on Wednesday reported a net loss of around €2 billion (US$2.18 billion) for the 2022-23 financial year due to major write-downs in its steel business, reported dpa news.

Thyssenkrupp put the impairment losses on the fixed assets of its subsidiary Steel Europe at €2.1 billion. The write-downs had become necessary due to the economic downturn and higher capital costs, it said.

Thyssenkrupp had originally forecast a net profit for the year of “at least” break-even, following a profit of €1.2 billion in the same period last year.

Shareholders are nevertheless to receive an unchanged dividend of €0.15 per share thanks to a significantly improved cash inflow.

Falling steel prices and a simultaneous rise in raw material and energy costs had a negative impact on earnings before interest and taxes (EBIT) adjusted for special effects, which fell from just under €2.1 billion to €703 million. Sales fell by 10 per cent to €37.5 billion.

In the new financial year, Thyssenkrupp intends to return to the profit zone. The company expects a net profit for the year in the low to mid three-digit million euro range.

The management led by chief executive Miguel López assumes that the economic environment will remain difficult. Adjusted EBIT is expected to rise to a high three-digit million-euro figure, while ThyssenKrupp anticipates slight growth in sales. –Bernama