Thyssenkrupp Warns of Difficult Year

By Jenny Busche

FRANKFURT--Thyssenkrupp AG's Chief Executive Heinrich Hiesinger on Friday repeated warnings of a difficult year, citing a weaker materials market.

"The start into the current business year was marked by a significant deterioration of the materials market environment," he said Friday at the company's annual general meeting in Bochum, Germany.

"One can say ... that our cautious estimate was realistic," he said.

Mr. Hiesinger confirmed the company's guarded outlook for an adjusted earnings before interest and taxes of EUR1.6 billion to EUR1.9 billion for the fiscal year to end September 2016, but cautioned that achieving the target will depend on a marked recovery in materials markets in the second half of the year. Thyssenkrupp also said it expects a "clear improvement" in net profit.

Mr. Hiesinger added he expects consolidation in the European steel industry amid overcapacity and cheap Chinese imports. "The current critical situation increases .... the pressure on all market participants [to consider] such scenarios," the CEO said.

The manager also voiced his concerns on Europe's plans to reduce greenhouse gas emissions, saying "European steel won't be internationally competitive," if these are implemented.

Write to Jenny Busche at Jenny.Busche@wsj.com

(END) Dow Jones Newswires

January 29, 2016 06:41 ET (11:41 GMT)

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