ThyssenKrupp could write down Value of Steel Unit - Report

ThyssenKrupp could write down Value of Steel Unit - Report

German language business newspaper Handelsblatt reported that ThyssenKrupp is writing down the value of its steel unit by more than 1 billion

euros. Handelsblatt has learned from corporate circles that because of the deteriorated business prospects, the value of the metallurgical area will be corrected downwards by more than a billion euros. ThyssenKrupp is due to report full-year results on November 19 and has said that its steel unit will likely post an adjusted operating loss of 1 billion euros. ThyssenKrupp plans to present its balance sheet for the 2019/20 fiscal year ended at the end of September. A spokesman declined to comment on the business development. The planned sale of the steel division should be at the centre of the balance sheet. ThyssenKrupp has been looking for a buyer for its steel division, the heart of which is the steelworks in Duisburg, since spring. So far the interest is manageable. Only the British steel investor Sanjeev Gupta had placed an offer at the company's headquarters in Essen through his company Liberty in mid-October.

ThyssenKrupp fell operationally deep into the red in the past fiscal year. The main reason for this is the steel division, which was hit hard by the economic crisis as a result of the pandemic. According to the circles, a loss from on-going operations is added to the billions in depreciation. The so-called free capital flow of the steel division is more than minus 1.7 billion euros in the reporting period, as it was said. This figure shows the amount that actually gapes between costs and income. The steel division has burned more money than seldom before. The depreciation and on-going losses show the pressure to act that the board of directors around the chairwoman Martina Merz is under. With the balance sheet presentation, it will become clear how much a bidder has to bring. The buyer must be able to compensate for the losses on his own.

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