By Christoph Steitz and Tom Käckenhoff
FRANKFURT (Reuters) - German conglomerate Thyssenkrupp (ETR:TKAG) cut its 2023/24 forecasts for sales and net profit for the second time in three months, blaming lower demand and prices at its steel unit as well as impairments at its materials trading division.
The move underscores the challenging environment for conglomerates focused on capital goods, which need to tackle elevated inflation, raw materials price swings and cooling global demand for their products.
Highlighting a "gloomy market environment", CEO Miguel Lopez said the company had made progress with its turnaround since the start of the year, singling out steps to sell or spin off its steel and marine divisions.
Thyssenkrupp, which makes steel, submarines and car parts, now expects an annual net loss in the low triple-digit millions of euros, it said on Wednesday, having previously forecast break-even.
According to LSEG data, analysts on average expect a net profit of 203 million euros ($220 million) in the year to September. The company had already cut its outlook when it released first-quarter results in February.
"Sobering report again," a Frankfurt-based equity trader said, adding the news should weigh on the group's shares, which have lost more than a fifth year-to-date.
Weakening demand led to impairments at Thyssenkrupp's materials trading division, the company said, without specifying the amount.
($1 = 0.9245 euros)