The company received a net loss of €2 billion at the end of the 2022/2023 financial year

German steelmaker Thyssenkrupp has announced a €2.1 billion ($2.3 billion) impairment loss on its steel division’s fixed assets due to gloomy earnings expectations. The company said in a statement.

The need to write off the assets was due to the economic downturn and rising capital expenditures.

As a result, Thyssenkrupp, which has been trying to sell its steel division for a long time, posted a net loss of €2 billion in FY2022/2023 (to the end of September). This figure includes asset impairment losses, mainly in Steel Europe. In the previous financial year, the company’s net profit was €1.2 billion.

«The numbers show that we have made progress in the transformation of Thyssenkrupp despite the challenging environment, but also that we must continue to work hard to improve the efficiency of our businesses,» said CEO Miguel Lopez, commenting on the company’s overall financial results.

Lopez also noted that the Group is systematically focusing its business on future areas to maximize its potential, especially in view of the great opportunities offered by the decarbonization of industry. According to him, Thyssenkrupp is committed to securing the future of sustainable steel in Germany by contributing to the sustainability and sovereignty of industrial value chains in the country and Europe.

As GMK Center reported earlier, recently Thyssenkrupp stated noticeable deterioration of the situation on the steel market, adding that the optimistic assumptions were offset by a combination of the weakness of the economy in Germany and other markets, as well as the increase in prices for raw materials and energy carriers. An additional negative factor was strong competition from Chinese steel producers on the European market.