By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) -Thyssenkrupp posted a quarterly net loss due to higher-than-expected costs on existing projects and halted the sale of one of its businesses, underscoring the industrial group’s restructuring challenges and sending its shares to a new low.
The German company, which cut its annual profit forecast for a third time last month, is struggling to sharpen the focus of its sprawling empire amid subdued demand.
In particular, the country is in the midst of a conflict-ridden process to divest half of the shares in its steel division to Czech billionaire Daniel Kretinsky.
Asked how Thyssenkrupp (ETR:) could regain investor confidence, new chief financial officer Jens Schulte said it needed to achieve higher profits and progress in restructuring.
The group, which also makes submarines and auto parts, posted a net loss of 54 million euros ($59 million) for the fiscal third quarter, compared with a profit of 83 million a year earlier, also attributing restructuring costs to its materials trading arm.
After spending some time trying to find a buyer for its Automation Engineering business, Thyssenkrupp said it was halting the sale and exploring deeper restructuring measures for the division’s powertrain.
“Strongly opposing market trends and one-off effects offset the progress made in Thyssenkrupp’s transformation in the third quarter,” said Schulte, who still praised the group’s quarterly performance despite numerous headwinds.
The company’s shares fell 3.6% at 0844 GMT, hitting a low when it revealed around 80 million euros in additional costs for past projects at its cement business that had not previously been booked.
Thyssenkrupp is currently at odds with its steel division TKSE over the level of financing needed to ensure an independent future. TKSE chairman Sigmar Gabriel said last week that the two parties were 1.3 billion euros apart.
($1 = 0.9113 euros)
