ThyssenKrupp (OTCPK:TYEKF) tumbles as much as 11% in German trading after issuing its second profit warning in four months, prompting concerns from analysts that the company’s problems are far from over.
The company blames legal provisions related to an investigation into alleged price-fixing in the steel industry as well as quality problems at its automotive and industrial components business, lower than expected earnings at its elevator unit and shipping restrictions at its steel division.
The results are “clearly disturbing,” says UBS analyst Carsten Riek. “The operational issues should have been recognized earlier.”
“Looking at the financial situation of the company, a possible cartel fine would come at an inopportune time,” DZ Bank says in a research note.
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