FRANKFURT, Aug 11 (Reuters) - Thyssenkrupp (TKAG.DE) on Wednesday flagged a negative free cash flow of up to 1.5 billion euros ($1.8 billion) in its current fiscal year, citing restructuring costs as the German conglomerate tries to simplify its sprawling set-up.
Shares of the steel-to-submarines group fell as much as 7.4% on the outlook for free cash flow before mergers and acquisitions (M&A), which is now expected to be a negative 1.2-1.5 billion euros in the year to September.
It had previously forecast the measure to narrow towards negative 1 billion euros from negative 5.5 billion last year.
Thyssenkrupp is trying to streamline its structure after years of underperformance. It sold its elevators division, its most profitable business, to private equity last year in a bid to survive, and more recently disposed of two smaller units. read more
The cash flow outlook overshadowed operational improvements, which showed Thyssenkrupp swung to an operating profit in its third-quarter on the back of high materials prices and automotive demand.
In the April-June period, adjusted earnings before interest and tax (EBIT) came in at 266 million euros, compared with a 693 million loss last year when the pandemic took its toll on the group.
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