German steel giant Thyssenkrupp on Wednesday lowered its outlook for 2023/24, expecting to break even instead of achieving the previously assumed net profit in the low to mid three-digit million euro range.

In the first quarter (Q1), Thyssenkrupp recorded a net loss of 314 million euros (336 million U.S. dollars) due to impairment losses, which were "mainly attributable" to higher capital costs, said the company. In the same period a year earlier, the company posted a profit of 75 million euros.

Sales fell by almost 9 percent to 8.2 billion euros. Lower price levels in the steel and materials businesses, as well as falling sales of work and raw materials, had a "negative impact," according to the company.

The steel industry was "facing a very challenging environment," Thyssenkrupp said in a statement, adding that "the weak economy, renewed increases in raw material costs, high energy costs, and strong competition from non-European market participants are affecting Europe's steel producers."