Thyssenkrupp trims goals amid rising US tariffs, Germany bracing for shockwaves
Thyssenkrupp Sees Sales Decline Amid U.S. Tariffs
Shares of German industrial giant Thyssenkrupp dropped seven percent on the Frankfurt Stock Exchange after the company cut its sales forecast, citing weak demand and intensified U.S. tariffs.
Revised Forecast
- Current fiscal year sales now expected to fall by five to seven percent
- Previous forecast was a drop of up to three percent
Impact on Legacy Steel Business
The firm, which has long struggled as its traditional steel division faces fierce competition from Asia, has been further hampered by U.S. President Donald Trump’s tariff campaign.
CEO’s Assessment
“The past quarter was characterised by enormous macroeconomic uncertainty,” said Thyssenkrupp Chief Executive Officer Miguel Lopez. “We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries.”
Financial Losses
Thyssenkrupp posted a net loss of 278 million euros for the April‑to‑June period, a figure five times greater than a year ago, driven by an impairment in its steel division and restructuring costs at its auto unit.
Operating Profit Forecast
The company forecast operating profits for the current fiscal year, ending in September, to be in the lower end of a previously announced range of 600 million to one billion euros.
Defence Division Gains
- Submarines and warship unit reported a jump in sales and orders, buoyed by defense demand triggered by the Ukraine war.
- Shareholders voted in favour of spinning off the division to capitalize on growing demand.
Broader Overhaul
Thyssenkrupp plans to split the group into standalone businesses, but the restructuring has stirred fears of further job cuts at the historic conglomerate.
