Struggling German conglomerate Thyssenkrupp plunged into the red in its second quarter, posting a net loss of 86 million euros (USD 96 million) on Tuesday following news that it will slash 6,000 jobs.
The plunge into loss-making at the start of the year contrasted with a 250-million-euro profit in early 2018, reflecting the troubled waters the Essen-based group has found itself in since last summer.
The German group's operating, or underlying profit (EBIT) fell 66 percent -- or 283 million euros - year-on-year down to 145 million euros.
"In the steel sector, the historic low ebb of the river Rhine, lower demand from the automotive industry and the new collective agreement (with worker representatives) had a negative impact on earnings," Thyssenkrupp said in a statement.
However, there was some good news as group-wide sales rose slightly, adding two per cent to reach 10.6 billion euros.
However, increased risk provisions related to a German anti-cartel investigation into steel prices burdened Thyssenkrupp's accounts.
This was reflected by the group's forecast net loss of between 1.1 and 1.2 billion euros for 2019.
Thyssenkrupp has abandoned a plan to split into two groups - "Industry" and "Materials" - but intends to list its highly profitable elevators business, valued at around 14 billion euros by analysts, on the stock market and adopt a holding structure.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)