FRANKFURT (Reuters) – Thyssenkrupp said on Tuesday its operating profit fell 33% in the first quarter, pointing to falling prices for materials, including steel, in the wake of a weakening Mondial economy.
The adjusted profit before interest and tax (Ebit) of the German industrial conglomerate stood at 254 million euros in the period October-December, while turnover remained stable at 9.02 billion euros.
“Visibility is limited regarding future economic developments,” Chief Financial Officer Klaus Keysberg said in a statement, calling first-quarter results robust despite an environment that remains uncertain.
Fears of a cooling global economy following the war in Ukraine have driven steel prices down from highs reached in 2022, hurting Thyssenkrupp’s materials trading division .
The group’s steel business, the second largest in Europe after ArcelorMittal, was less affected due to long-term contracts that lock in prices and only reflect declines with a lag of several quarters.
(Report Christoph Steitz, Augustin Turpin, edited by Kate Entringer)
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