ThyssenKrupp AG (OTC: TKAMY) reported a swing to loss in the fiscal 2023 fourth quarter compared with a net profit in the similar quarter of fiscal 2022. However, the German industrial giant issued an optimistic earnings outlook for fiscal 2024. The stock of ThyssenKrupp ended Thursday’s trading session at $7.65, up 6.28%, or $0.45, from its prior close.
Essen, Germany-based ThyssenKrupp reported fourth-quarter revenues of €8.81 billion, down from €10.57 billion in the comparable period of fiscal 2023.
For the recent quarter, the company recorded a net loss of €2.01 billion, or €3.23 per share, compared with a net income of €389 million, or €0.63 per share, in 4Q 2022.
For fiscal 2023, ThyssenKrupp posted revenues of €37.50 billion, a decrease from €41.10 billion in fiscal 2022. Notably, order intake was €37.10 billion, compared with €44.30 billion.
Net loss for fiscal 2023 was €2.07 billion, or €3.33 per share, compared with a net profit of €1.14 billion, or €1.82 per share, in fiscal 2022. The company took an impairment charge of €2.10 billion on its steel division.
The company’s steel division recorded FY23 sales of €12.4 billion, down 6% from last year. Also, ThyssenKrupp pointed out higher gas and raw material prices for the loss.
Adjusted EBIT (earnings before interest and taxes) in 4Q 2023 was €703 million, a steep decline from €2.06 billion in 4Q 2022.
Looking ahead, in FY 2024, ThyssenKrupp anticipates a positive upturn in net income, projecting it to reach a low to mid-three-digit million euro range, a notable improvement from the previous year’s loss. Concurrently, the steel-to-submarines company foresees modest year-on-year growth in sales and envisions an increase in adjusted EBIT to a figure within the high three-digit million euro range compared to the preceding year. Furthermore, the company intends to realize an adjusted EBIT margin of between 4% and 6% at the group level in FY 2025.
ThyssenKrupp revealed that its Executive and Supervisory Board will suggest a dividend of €0.15 per no-par share for FY 2023 in the Annual General Meetings scheduled for February 2, 2024.
The swing to loss in the fourth quarter and optimistic FY 2024 outlook are expected to turn the stock of ThyssenKrupp range-bound in the short term.
The historical price chart indicates that the stock of ThyssenKrupp is facing resistance at $8.10. The next major support is anticipated to be only near $7.35. Additionally, the stochastic indicator is in the overbought region. Therefore, we can expect the stock to undergo a small price correction in the days ahead.
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