STORY: Thyssenkrupp took a fresh $1 billion impairment on its struggling steel division.
The firm blamed the sector’s worsening outlook as weak demand and Asian competition hurt Germany’s industry.
The latest impairment on steel is the second in as many years for the German group.
It drove Thyssenkrupp to an annual net loss of nearly $1.6 billion.
Thyssenkrupp’s troubles have forced it to find new owners for its iconic steel business as well as its warship division.
Steelmaking is one of the most energy-intensive industries.
The sector has battled high power costs and cheaper Asian rivals for years.
It also faces billions of euros in investment to cut emissions and produce steel through renewable sources.
Thyssenkrupp is in talks with Czech billionaire Daniel Kretinsky over whether he could raise his stake in the steel division to 50%.
It said discussions now depend on a new business plan for the unit which is currently being drawn up.
Despite its ongoing woes the firm’s shares jumped 10% Tuesday (Nov 19).
Analysts said the writedown could ease the sale of a stake in the troubled steel business.
They also welcomed an unexpected positive cash flow at the group level.
