Europe: Thyssenkrupp, a German warship-to-car parts conglomerate, reported a sharp drop in operating profit during the first quarter of this year. The company cited lower prices for materials, such as Steel, that were caused by an overall weakening global economy. This meant that the upper handheld by the manufacturer was weakened, and its profits dropped by 33%.

Adjusted earnings before interest and tax (EBIT) reached an impressive 254 million euros ($272 million) in the final quarter, while total sales stayed steady at 9.02 billion euros.

"There is limited visibility in respect of future economic developments," Chief Financial Officer Klaus Keysberg stated in a statement. Despite uncertainties in the environment, the first quarter results were robust.

Steel prices have dropped significantly since the start of the conflict in Ukraine, taking a toll on Thyssenkrupp's trading division. Amidst growing concern over a global economic downturn due to the war, Steel prices have retreated from their high mark seen in 2022. This is having a negative impact on Thyssenkrupp's business operations.

Despite the economic downturn caused by the COVID-19 pandemic, Europe's second largest Steel business - ArcelorMittal MT.LU - has been less affected due to long-term contracts that help to lock in prices and delay the full impact of cost declines for several quarters.