By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUSSELDORF (Reuters) -German conglomerate Thyssenkrupp cut its full-year outlook for investments and sales on Thursday, blaming weak demand for its products as U.S. President Donald Trump’s import tariffs disrupt global trade of autos, machines and building materials.
The company, with a broad portfolio that includes steelmaking and submarine production, now expects sales to fall by 5% to 7% during its fiscal year to September 30. It previously expected sales to drop by up to 3%.
Thyssenkrupp said that the introduction of tariffs had curbed international trade and hit global supply chains, and that things could get worse should the conflict in the Middle East escalate further.
“The past quarter was characterised by enormous macroeconomic uncertainty,” Thyssenkrupp CEO Miguel Lopez said.
“We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries.”
Shares in the company were indicated 2.3% lower in pre-market trade.
Adjusted earnings before interest and tax (EBIT) are now forecast to be at the lower end of the 0.6 billion to 1 billion euros ($0.7 billion to $1.2 billion) guidance range, the company said.
In its fiscal third quarter from April to June, adjusted EBIT rose 4% to 155 million euros, missing the 174 million average estimate in an analyst poll provided by the group.
($1 = 0.8544 euros)
(Reporting by Christoph Steitz; Editing by Richard Chang, Ludwig Burger and Rachna Uppal)
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