TKAMY Thyssenkrupp AG (PK)

ESSEN, Germany—German industrial conglomerate Thyssenkrupp AG on Thursday reported a 4% decline in net profit for its fiscal year 2016, weighed down by difficult market conditions for the group's materials businesses.

Net profit for the year ended Sept. 30 was 296 million euros (about $312 million), compared with €309 million during the prior year, falling short of analysts' forecasts. Analysts had predicted a net profit of €364 million, according to a recent poll conducted by The Wall Street Journal.

Annual sales fell by 8%, to €39.29 billion, while orders dropped by 9%, to €37.42 billion, mainly a result of high import and price pressure on the materials businesses. Those businesses include the company's steel operations and its materials services business, which sells products like stainless steel and alloys.

For fiscal year 2017, Thyssenkrupp said it expects adjusted earnings before interest and taxes to increase to around €1.7 billion, compared with €1.5 billion in fiscal 2016. The company also expects a "clear improvement" in net profit and a "slightly positive" free cash flow before mergers and acquisitions for fiscal 2017.

Free cash flow before M&A for fiscal 2016 came in at €198 million, compared with €115 million the year before.

Thyssenkrupp said it would propose an unchanged dividend of €0.15 a share for fiscal 2016.

Write to Christopher Alessi at christopher.alessi@wsj.com

(END) Dow Jones Newswires

November 24, 2016 02:05 ET (07:05 GMT)

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