FRANKFURT (Reuters) -Thyssenkrupp cut its annual sales and net profit forecasts on Wednesday, blaming softening demand and prices at its steel division, where fresh impairment losses highlighted the sector's persisting headwinds. Thyssenkrupp said its steel business, half of which it is trying to sell to Czech billionaire Daniel Kretinsky, was currently facing a mix of higher raw material and energy costs, weak demand and cheap Asian rivals. In addition, a higher cost of capital at the division, Germany's largest steelmaker, was the main contributing factor behind 200 million euros ($214 million) in impairment losses, Thyssenkrupp said along with its first-quarter results.
Weakening steel markets
are complicating Thyssenkrupp s talks over the
potential sale of a stake in its Steel Europe business to Czech
billionaire Daniel Kretinsky, the German conglomerate s CEO.
By Helena Smolak Thyssenkrupp appointed Jens Schulte as its chief financial officer and has expanded the executive board in a move to sharpen the industrial.