ThyssenKrupp AG is mulling over the sale of its naval vessels business, Reuters reported June 7, citing an anonymous source.
The business falls under the German conglomerate's Marine Systems unit, with local newspaper Handelsblatt first breaking the news. Handelsblatt wrote that talks with competitors are exploring a full or partial sale of the business, which may be wound down in the absence of a deal. The report added that ThyssenKrupp is also considering exiting its submarine business.
The Marine Systems unit was part of a consortium that recently lost out on a bid to build a new warship for the German military.
The company has discussed selling the Marine Systems division in the past, according to an internal note to staff obtained by Reuters. A ThyssenKrupp representative confirmed the note's existence to the newswire, but declined to comment on a potential sale of all or part of the division.
The unit is part of the Industrial Solutions division, which recorded more than a 50% drop in order intakes to €924 million for the second quarter. In May, the group posted a swing to a second-quarter profit of €243 million from a loss of €879 million the year before, with order intake falling 12% over the period to €10.50 billion.
Investors frustrated with underperformance have been calling on the conglomerate to simplify its structure to give its various divisions a chance to thrive.
