Thyssenkrupp moves to sell elevator business; to slash 6,000 jobs

Thyssenkrupp moves to sell elevator business; to slash 6,000 jobs
23/11/2019 , by , in ALLIED

Thyssenkrupp’s new boss scrapped the German industrial group’s dividend, warned of deeper losses and asked investors for yet more patience over its turnaround, sending shares in the conglomerate down as much as 14.5% on Thursday. The moves immediately turned up the pressure on Martina Merz, who served as chairwoman before taking over as CEO, to quickly sell the company’s elevators business – a prize asset it has put on the block to try to mend its finances.

After four profit warnings and two failed attempts to restructure since July 2018, Thyssenkrupp is also aiming to slash 6,000 jobs and looking for new owners of businesses where it is clear it cannot catch up with rivals.

“I ask you to be patient,” Merz said in an investor call following results for the year to Sept. 30, which showed net losses widening to 304 million euros ($337 million) from 62 million a year earlier.

The group’s net loss is expected to widen again this fiscal year. At 1425 GMT, Thyssenkrupp shares, which dropped out of Germany’s DAX 30 index in September, were down 13.3% at 11.71 euros. They earlier touched an 11-week low of 11.54 euros.

Merz, who was appointed CEO last month for 12 months in an emergency move, said talks with investors, executives and employees had convinced her the steel-to-submarines group required substantial change.

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