Thyssenkrupp has maintained its previously announced 2020 forecast at an adjusted EBIT level of €802mn ($869mn) after a disappointing Q1 2020.
The company suffered an overall profitability decline across all business segments, but remains hopeful of concluding the sale of its elevators business later this year. It also remains engaged in negotiations for its steel strategy with concerned parties, according to Martina Merz, chief executive officer of Thyssenkrupp AG.
Thyssenkrupp’s steel business continued to lose momentum in the first quarter of 2020, after demand for material from the auto sector declined considerably, the company reported.
Sales and order intake at Thyssenkrupp Steel Europe decreased in Q1 2020 from Q1 2019. The steelmaker reported a 13pc decline in sales during the quarter, and a 10pc decrease in order intake during the same period.
The decrease in shipments, along with higher iron ore prices—which added cost pressure—saw the division posting a loss of €164mn compared with a loss of €38mn in Q1 2019.