Thyssenkrupp, Germany’s largest steelmaker, announced a €1 billion impairment on its steel division, citing weak demand, rising Asian competition, and high energy costs. This marks the second major writedown in as many years and contributed to a €1.5 billion net loss for the 2023/24 fiscal year, down from €2 billion the year prior.

The company is in talks with Czech billionaire Daniel Křetínský, who owns 20% of the steel unit, about increasing his stake to 50%. The outcome hinges on a new business plan under development.

Despite the setback, Thyssenkrupp reported positive free cash flow of €110 million, driven by prepayments in its Marine Systems division. CEO Miguel López emphasized 2024 as a pivotal year for strategic decisions, including the potential restructuring of its steel and warship businesses. Shares rose slightly after the announcement.