TYEKF - Thyssenkrupp suspends cash flow forecast; steel spinoff in doubt

Thyssenkrupp (TYEKF -6.6%) plunges nearly 10% in European trading after suspending cash flow guidance for the full year and reviewing its spending plans, citing the impact of Russia's invasion of Ukraine on raw material prices, which will affect its steel and automotive supply businesses. Thyssenkrupp previously had flagged reaching breakeven free cash flow before M&A in FY 2022 ending in September as a priority following years of high cash burn. The company also said the effect of the war has caused it to delay the planned spinoff of its steel business, since current economic conditions prevent it from judging the feasibility of the plan. Even as sales from Russia and Ukraine comprise less than 1% of total revenues, Thyssenkrupp said negative price effects will be stronger than previously expected, and global disruptions at various points in the supply chain will affect its core steel and automotive supply businesses. Thyssenkrupp's news

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Thyssenkrupp suspends cash flow forecast; steel spinoff in doubt