By Scott Kanowsky
Investing.com -- Shares in Thyssenkrupp AG (ETR:TKAG) slumped to their lowest point since November after the German industrial group reported a slide in first-quarter income and weaker order intake.
Adjusted earnings before interest and taxes in the three months to December 31 fell by a third compared to the same period in the prior year to €254 million. Thyssenkrupp said this was mainly due to a steep decrease in metal prices hitting its materials services division.
Orders also dropped by 12% to €9.18 billion, as concerns over the broader economic outlook in the U.S. and the ongoing conflict in Ukraine led to customers to rein in spending.
"Taking into consideration the ongoing constraints on the reliability of planning due to the macroeconomic and geopolitical uncertainties, we are confirming our forecast for the present fiscal year," said chief financial officer Klaus Keysberg in a statement.
Thyssenkrupp said it expects adjusted pre-tax profit to decrease to a value in the mid to high three-digit million euro range. Meanwhile, net income and free cash flow are forecast to break even, despite elevated restructuring costs and capital expenditures.
Analysts flagged the unchanged outlook implies that returns for Thyssenkrupp will be lower for the rest of the year.