Hans Christoph von Rohr, chairman, said he expected the group net loss in the current business year ending September to top DM200m ( pounds 86m). It plunged to a loss of DM560m last year.
'Steel earnings have nose-dived to a level that roughly corresponds to 1961,' said Mr von Rohr. 'Too much capacity, imports not priced according to market conditions, European subsidies, these are the elements of a scenario that threatens every European steel firm.'
Klockner said it was proposing to cut its capital as part of a plan to restructure its debt. The group is seeking relief from up to 60 per cent of its DM2.7bn debt.
Compounding the gloom about the German economy, the Berlin- based DIW economics institute said yesterday it expected private consumption to decline considerably in the first quarter of 1993.
Meanwhile Stern magazine reported that Mercedes-Benz could run up operating losses as high as DM3bn in 1993. It said a DM2bn loss was already written into the firm's current business plan.
The magazine quoted a management source as saying this figure might have to be adjusted in the light of atrocious market conditions. Mercedes refused to comment on what it called 'fairy-tale figures'.Reuse content