Germany’s Thyssenkrupp Cuts Targets Amid US Tariffs: What This Means for Investors and Businesses
FRANKFURT — Thyssenkrupp shares dropped sharply on Thursday after the German industrial conglomerate lowered its sales forecast, citing weak demand amid the impact of U.S. President Donald Trump’s tariffs.
The group, which produces a range of products from steel and automotive parts to submarines, now anticipates a sales decline of five to seven percent for the current fiscal year, a significant revision from the previous forecast of a decline of up to three percent.
Following the announcement, Thyssenkrupp’s shares fell by seven percent on the Frankfurt Stock Exchange.
The company, long challenged by competitive pressures in its traditional steel business—particularly from Asia—has seen its difficulties intensify due to the ongoing tariff disputes.
Thyssenkrupp CEO Miguel Lopez described the last quarter as marked by “enormous macroeconomic uncertainty” and highlighted the impact of weak market conditions in key sectors such as automotive, engineering, and construction.
For the April to June period, the firm reported a substantial net loss of 278 million euros ($325 million), which is five times greater than the loss reported a year earlier. This decline was driven by an impairment charge in the troubled steel division and restructuring expenses in its automotive unit.
The company also issued a more cautious outlook for operating profits for the fiscal year ending in September, now expecting results at the lower end of its previously forecast range of 600 million to 1 billion euros.
On a positive note, Thyssenkrupp’s defense unit, which manufactures submarines and warships, saw a rise in sales and orders, boosted by increased demand linked to the Ukraine conflict.
Recently, shareholders approved the plan to spin off this division, enabling it to capitalize more effectively on growing market opportunities.
This move is part of a comprehensive restructuring to separate Thyssenkrupp into a series of independent businesses, a strategy that has sparked concerns about potential further job cuts at the historic conglomerate.
— AFP
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Thyssenkrupp’s struggle amid global tariff tensions and shifting market demands highlights the volatility industrial sectors face due to geopolitical and economic uncertainties. For businesses in Oman, this signals the need to diversify supply chains and explore resilient sectors such as defense and technology. Smart investors and entrepreneurs should monitor restructuring trends and emerging opportunities in defensive industries, which show growth even in challenging times.
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