Thyssenkrupp cuts profit guidance on cost overruns at industrial unit
Thyssenkrupp, the German engineering group shaken by activist investors, cut its earnings forecast on Tuesday, citing cost overruns at plant engineering and ship building projects.
The guidance for adjusted operating profit in the 2017/2018 fiscal year was now for around 1.8 billion euros ($2.11 billion), at the lower end of the previously forecast range of 1.8 to 2 billion euros.
"The main negative factors were higher expected total costs, particularly for a marine project in Turkey, a cement plant in Saudi Arabia and a biofuel power plant in Australia," it said in a statement.
Group free cash flow before mergers and acquisitions for the full year would be negative, where it had previously seen a positive figure.
Still, the outlook for group net income was for a significant improvement from the previous year`s 271 million euros, it added.
($1 = 0.8548 euros)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.