Thyssenkrupp has reported a net loss of €54 million ($59 million) for its fiscal third quarter, a stark contrast to a profit of €83 million during the same period last year. The loss is attributed to higher-than-expected costs related to legacy projects and ongoing restructuring challenges, which have led the company to halt the sale of its Automation Engineering business.
The German industrial group has faced difficulties in refining its focus amidst subdued demand and has cut its annual profit forecast for the third time recently. The ongoing divestment of half its steel division shares to Czech billionaire Daniel Kretinsky has been particularly contentious.
New finance chief Jens Schulte emphasized the need for Thyssenkrupp to deliver higher profits and make progress on restructuring to regain investor confidence. The company’s shares fell by 3.6%, reaching a record low, following the announcement of an additional €80 million in costs for past projects in its cement business.
Thyssenkrupp’s steel division is currently at odds regarding necessary funding levels for its future viability, with a reported €1.3 billion funding gap between the two sides.