Thyssenkrupp falls most in 2 years af­ter profit warn­ing

The Hindu Business Line - - NEWS - BLOOMBERG

Thyssenkrupp AG shares plunged the most in two years af­ter cut­ting its profit fore­cast, an­other sign that the cri­sis at the Ger­man in­dus­trial gi­ant is far from over.

The com­pany said there could be sub­stan­tial ad­verse con­se­quences be­cause of a Ger­man in­ves­ti­ga­tion into steel-price fix­ing, and cited weak­ness at its el­e­va­tor divi­sion. The com­pany has also been af­fected by ship­ping de­lays due to low wa­ter lev­els in the Rhine river.

The shares sank 12 per cent to €16.84 in Frank­furt. Net in­come will be less than half last year’s level, ac­cord­ing to a state­ment re­leased late on Thurs­day.

Ger­many’s an­titrust of­fice has been in­ves­ti­gat­ing the steel in­dus­try for col­lud­ing on prices. In July, the of­fice levied €205 mil­lion in fines on sev­eral com­pa­nies. The probe isn’t ex­pected to af­fect the Tata Steel joint ven­ture, Thyssenkrupp board mem­ber Dona­tus Kauf­mann said in a let­ter to em­ploy­ees seen by Bloomberg.

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