Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Thyssenkrupp second-quarter loss widens as coronavirus impact starts to show

Published 05/12/2020, 01:02 AM
Updated 05/12/2020, 02:20 AM
© Reuters. The logo of Thyssenkrupp is seen near elevators in its headquarters in Essen
TKAG
-
CINV
-

FRANKFURT (Reuters) - Thyssenkrupp (DE:TKAG) on Tuesday said its second-quarter net loss more than quintupled as the coronavirus pandemic hit all business lines at the struggling steel-to-submarines conglomerate.

The group posted a 948 million euro ($1.02 billion) net loss in the quarter to March and said that in the current quarter losses could reach up to 1 billion euros, as the group eagerly awaits a cash inflow from the sale of its elevator division.

"The full impact of the crisis on our businesses is not yet foreseeable. But it is already clear that the economic disruptions will leave very deep marks," Chief Executive Martina Merz said.

Thyssenkrupp said it had secured a 1 billion euro credit line from German state-owned bank KfW [KFW.UL] to tide it over until it gets the money from buyers Advent and Cinven (CINV.UL), which it expects to happen by the end of September.

© Reuters. The logo of Thyssenkrupp is seen near elevators in its headquarters in Essen

The company heavily depends on the automotive sector, its biggest client group which itself has been hit by the pandemic and was forced to shut down plants around the globe, causing a raft of profit warnings.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.