Thyssenkrupp Reports €1 Billion Impairment Loss

Thyssenkrupp reported a significant 1 billion euro impairment on its struggling Steel Europe division, exacerbated by weak demand, high costs, and stiff competition from Asia, leading to a total net loss of 1.5 billion euros for the fiscal year ending September 30. This marks the second consecutive year of substantial losses for the company, which is undergoing a major restructuring amidst challenging market conditions. CEO Miguel Lopez emphasized that the current fiscal year would be crucial for making strategic decisions regarding Steel Europe and Marine Systems. Meanwhile, the company is in talks with Czech billionaire Daniel Kretinsky about potentially increasing his stake in the steel division from 20% to 50%. Despite the losses, Thyssenkrupp achieved unexpected positive free cash flow of 110 million euros, aided by prepayments from its Marine Systems division. The company's shares rose by 8.4% in morning trading following the news, reflecting investor optimism amidst ongoing restructuring efforts.