FRANKFURT (Reuters) – German warship-to-car parts conglomerate Thyssenkrupp on Tuesday said its operating profit fell by 33% in the first quarter, blaming lower prices for materials, including steel, in the wake of a weakening global economy.
Adjusted earnings before interest and tax (EBIT) came in at 254 million euros ($272 million) in the October-December period, while sales remained stable at 9.02 billion euros.
“There is limited visibility in respect of future economic developments,” Chief Financial Officer Klaus Keysberg said in a statement, describing first-quarter results as robust despite an environment that continues to be uncertain.
Concerns of a cooling of the global economy following the war in Ukraine have caused prices for steel to come down from their high levels seen in 2022, hitting Thyssenkrupp’s materials trading division.
Its steel business, Europe’s second-largest after ArcelorMittal, was less affected due to long-term contracts that lock in prices and only reflect declines with a time delay of several quarters.
($1 = 0.9328 euros)
(Reporting by Christoph Steitz; Editing by Sandra Maler and Miranda Murray)
