March 17 (Reuters) - German electrolysis equipment maker Thyssenkrupp Nucera on Tuesday lowered its full-year outlook, citing higher-than-expected costs. The company now expects full-year sales in the
Thyssenkrupp Nucera trims full-year outlook citing costs related to green hydrogen segment
Thyssenkrupp Nucera Revises Financial Forecasts Amid Green Hydrogen Challenges
March 17 (Reuters) - German electrolysis equipment maker Thyssenkrupp Nucera lowered its full-year outlook on Tuesday, citing higher-than-expected costs related to the company's green hydrogen segment.
Updated Sales and Earnings Projections
The company now expects full-year sales in the range of 450 million euros to 550 million euros ($519.1 million to $634.5 million), down from its earlier forecast of 500 million to 600 million euros.
EBIT Outlook Adjustment
Thyssenkrupp Nucera also lowered its earnings before interest and taxes outlook for the financial year to a loss of 80 million and 30 million euros, compared with its prior expectations of a loss of 30 million euros to break-even.
Impact of Green Hydrogen Segment
Reduced expectations in the company's green hydrogen segment were the primary reason for the forecast cut across the group. The company expects EBIT for the segment between a loss of 90 million and 125 euros, wider than its earlier guidance of a loss between 55 million and 80 million euros.
Factors Behind the Trimmed Guidance
The Dortmund, Germany-based company cited higher-than-expected expenses related to some already delivered models, as well as the termination of a contract for a 20 MW pilot plant as the reasons for the trimmed guidance for the segment.
Revised Green Hydrogen Segment Sales Forecast
For the full year, Thyssenkrupp Nucera now forecasts sales for the green hydrogen segment to be in the range of 120 million to 170 million euros, down from its previous estimate of 150 million to 220 million euros.
Market Context and Investor Sentiment
The market for green hydrogen has been a challenging area for Thyssenkrupp Nucera. The company, which is majority-owned by Thyssenkrupp, had pointed to headwinds in the sector in its annual results last year and said that investors had become more hesitant with regard to green hydrogen investments.
Exchange Rate and Reporting Credits
($1 = 0.8669 euros)
(Reporting by Devika Nair in Bengaluru; Editing by Alan Barona)
