FRANKFURT (Reuters) – Thyssenkrupp (TKAG.DE) on Tuesday said its second-quarter net loss more than quintupled as the coronavirus pandemic hit all business lines at the struggling steel-to-submarines conglomerate.
The group posted a 948 million euro ($1.02 billion) net loss in the quarter to March and said that in the current quarter losses could reach up to 1 billion euros, as the group eagerly awaits a cash inflow from the sale of its elevator division.
“The full impact of the crisis on our businesses is not yet foreseeable. But it is already clear that the economic disruptions will leave very deep marks,” Chief Executive Martina Merz said.
Thyssenkrupp said it had secured a 1 billion euro credit line from German state-owned bank KfW [KFW.UL] to tide it over until it gets the money from buyers Advent and Cinven [CINV.UL], which it expects to happen by the end of September.
The company heavily depends on the automotive sector, its biggest client group which itself has been hit by the pandemic and was forced to shut down plants around the globe, causing a raft of profit warnings.
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