Shares in the German conglomerate fell as much as 9.6% after the group said that negative free cash flow before mergers and acquisitions (M&S) widened to 750 million euros ($911 million), worse than analysts at Jefferies and JP Morgan had expected.
“This is putting pressure on the stock,” said one trader, also pointing to profit-taking as inflation jitters triggered a global sell-off in equities.
Returning to positive cash flow has been one of the key targets of the submarines-to-bearings group in its efforts to win back confidence among investors and to prove it has a sustainable business model.
“We want and need to return to positive cash flow as quickly as possible,” said Chief Financial Officer Klaus Keysberg, adding that investments also need to be made to ensure the company can grow.
Thyssenkrupp confirmed free cash flow before M&A would be negative at about 1 billion euros this year.
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