ThyssenKrupp reports surprise loss

LONDON (ShareCast) - ThyssenKrupp (Xetra: 750000 - news) disappointed the market with a surprise loss for its fiscal first quarter and refused to guess about the future due to the dismal macro conditions. Germany's largest steelmaker saw EBIT (earnings before interest and taxes) clock in a €357m loss during its latest quarter. The number compares to last year's €273m in profits and the €92.3m consensus estimate. The DAX component also said sales fell 2% to €11.37bn, while new orders remained flat at €11.26bn. The group did say that, except for its Steel Americas division (which registered a €288m loss), its continuing operations excluding extraordinary items contributed positively to the company's EBIT. Yet, the German company admitted that "subdued economic activity in our core markets significantly impacted the performance of the group in the first quarter." ThyssenKrupp refrained from making predictions about the future other than stating that Steel Americas' losses will be "lower" in the second quarter thanks to higher volumes and improved productivity. In any case, the group noted that end demand was being negatively affected by the European sovereign debt crisis and added that "the continuing uncertain situation in the overall economy does not allow one right now to give a reliable forecast for the whole year". ThyssenKrupp currently leads the losses on the DAX (Xetra: ^GDAXI - news) as it trades down 2.79% to €21.285. JM