ThyssenKrupp-News: Group has to write off billions

Thyssen-Krupp in Duisburg

Thyssen-Krupp has been looking for a buyer for its steel division, the heart of which is the steelworks in Duisburg, since spring.

(Photo: Imago)

Frankfurt, Düsseldorf The industrial group Thyssen-Krupp fell deep into the red in the past fiscal year. The main reason for this is the steel division, which was hit hard by the economic crisis as a result of the pandemic. Because of the deteriorated business prospects, the value of the metallurgical area will be corrected downwards by more than a billion euros, as the Handelsblatt has learned from corporate circles.

Thyssen-Krupp plans to present its balance sheet for the 2019/20 fiscal year ended at the end of September on Thursday. A spokesman declined to comment on the business development. The planned sale of the steel division should be at the center of the balance sheet.

According to the circles, a loss from ongoing operations is added to the billions in depreciation. The so-called free capital flow of the steel division is a little over 1.7 billion euros in the reporting period, as it was said. This figure shows the amount that actually gapes between costs and income. The steel division has burned more money than seldom before.

The bottom line is that the group as a whole is likely to have a deficit of well over three billion euros – it would be the second largest loss in the history of Thyssen-Krupp. The company reported a loss of five billion euros only for the 2011/12 financial year.

The depreciations and the ongoing losses show the pressure to act that the board of directors around the chairwoman Martina Merz is under. Thyssen-Krupp has been looking for a buyer for its steel division, the heart of which is the steelworks in Duisburg, since spring.

So far the interest is manageable. Only the British steel investor Sanjeev Gupta had placed an offer at the company’s headquarters in Essen through his company Liberty in mid-October. In the past few weeks, the steel company has given further details about its financial strength to dispel doubts at Thyssen-Krupp. There were concerns in the industry that Gupta could manage a takeover.

Buyer must make up for losses

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