ThyssenKrupp reports huge hit on stainless steel

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German steel giant ThyssenKrupp said on Friday it booked heavy losses in its business year just ended owing to massive 2.9 billion euros ($3.9 billion) in writedowns on its US and stainless steel businesses.

ThyssenKrupp said in a statement it booked bottom-line net loss of 1.783 billion euros in the 12 months to September compared with profit of 927 million euros a year earlier, on a 15-percent rise in sales to 49.09 billion euros.

The steelmaker explained that had decided to write down 2.9 billion euros on its US and stainless steel businesses because book values of those assets were "no longer in line with market conditions."

There had been cost overruns on the construction of a plant in Brazil, which could not be offset in the near term and there was renewed weakness of the markets in the US and Europe, "which is hampering market entry for the products of the Steel Americas business area," it said.

© 2011 AFP

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