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Investing.com - Shares of Thyssenkrupp (ETR:TKAG) sank by more than 7% on Thursday after the German industrial giant slashed its annual sales outlook and warned of persistent tariff-driven challenges in its operating backdrop.
ThyssenKrupp, whose business spans from steelmaking to shipbuilding, flagged that it has been facing tepid demand and low pricing. As a result, sales are now anticipated to slip by between 5% to 7% during the current fiscal year -- a deeper drop than its prior estimate for a decline of as much as 3%.
The firm also narrowed its adjusted earnings before interest and taxes estimate, saying it expects the figure to be "at the lower end" of its guided range of 600 million euros to 1 billion euros.
"The past quarter was characterized by enormous macroeconomic uncertainty. We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries," said CEO Miguel López in a statement.
López noted that ThyssenKrupp has been pursuing "rigorous" cost-cutting measures to help keep earnings stable.
Stricter U.S. tariff policies under President Donald Trump clouded the broader business environment, although this "ebbed slightly" in the wake of a preliminary trade agreement between the White House and the European Union at the end of July, ThyssenKrupp said.
"[H]igher import tariffs and labor market instability will bring challenges in the short and medium term," the company said. It added that the outlook remained murky, particularly after a recent escalation in violence in the Middle East.
In its fiscal third quarter, ThyssenKrupp posted adjusted core earnings of 155 million euros, a rise of 4% versus a year ago but below company-provided analyst estimates of 174 million euros.