German steel giant thyssenkrupp AG announced that even if the group's sales with Russia and Ukraine are negligible at well under one percent of total sales, the far-reaching macroeconomic and geopolitical consequences of the war in Ukraine will adversely affect the group's business development. ThyssenKrupp Executive Board currently assumes that the global disruptions at various points in the supply chain will have consequences, especially for thyssenkrupp's steel and automotive supplier businesses. Developments in the opposite direction in the materials trading business, which is benefiting from the current rise in commodity and material prices, and the countermeasures that have been introduced will not be able to fully compensate for these burdens. From today's perspective, there is a great deal of uncertainty about the specific extent of the direct and indirect consequences of the war in Ukraine on thyssenkrupp's business development. Against this background, in particular due to the rising raw material prices, thyssenkrupp AG is suspending the forecast for free cash flow before M&A for fiscal year 2021/2022.Up until the outbreak of war, thyssenkrupp AG's business was developing according to plan in the first quarter and the current second quarter of the fiscal year. In March, the first impairments i. W. in the steel and auto parts stores. From today's perspective, the Executive Board still expects adjusted EBIT in the second quarter to improve compared to the previous quarter. The free cash flow before M&A, on the other hand, will be more heavily impacted than previously expected by negative price effects.The economic consequences of the war in Ukraine for the business development of the group of companies also influence the possible independence of the steel business. Thyssenkrupp AG remains convinced that setting up the steel business independently opens up very good future prospects. Nevertheless, a statement on the feasibility is currently not possible due to the current economic conditions. The transformation and further development of the company will continue to be advanced. The companies in the group are reacting to the expected burdens with all necessary and possible countermeasures. At the same time, thyssenkrupp is sticking to its green transformation plans.
German steel giant thyssenkrupp AG announced that even if the group's sales with Russia and Ukraine are negligible at well under one percent of total sales, the far-reaching macroeconomic and geopolitical consequences of the war in Ukraine will adversely affect the group's business development. ThyssenKrupp Executive Board currently assumes that the global disruptions at various points in the supply chain will have consequences, especially for thyssenkrupp's steel and automotive supplier businesses. Developments in the opposite direction in the materials trading business, which is benefiting from the current rise in commodity and material prices, and the countermeasures that have been introduced will not be able to fully compensate for these burdens. From today's perspective, there is a great deal of uncertainty about the specific extent of the direct and indirect consequences of the war in Ukraine on thyssenkrupp's business development. Against this background, in particular due to the rising raw material prices, thyssenkrupp AG is suspending the forecast for free cash flow before M&A for fiscal year 2021/2022.Up until the outbreak of war, thyssenkrupp AG's business was developing according to plan in the first quarter and the current second quarter of the fiscal year. In March, the first impairments i. W. in the steel and auto parts stores. From today's perspective, the Executive Board still expects adjusted EBIT in the second quarter to improve compared to the previous quarter. The free cash flow before M&A, on the other hand, will be more heavily impacted than previously expected by negative price effects.The economic consequences of the war in Ukraine for the business development of the group of companies also influence the possible independence of the steel business. Thyssenkrupp AG remains convinced that setting up the steel business independently opens up very good future prospects. Nevertheless, a statement on the feasibility is currently not possible due to the current economic conditions. The transformation and further development of the company will continue to be advanced. The companies in the group are reacting to the expected burdens with all necessary and possible countermeasures. At the same time, thyssenkrupp is sticking to its green transformation plans.
