BERLIN, (Reuters) – Thyssenkrupp in Germany has announced that its 2021/22 forecast to free cash flow for mergers and acquisitions was suspended Wednesday. Thyssenkrupp also stated that the Ukraine crisis had caused it to suspend its 2021/22 forecast and it is not clear if it will be able spin off its steel business.

Thyssenkrupp is convinced that an independent steel business positioning offers excellent prospects for the future. However, it stated that a declaration on the feasibility of the steel business is not feasible at the moment due to economic conditions.

Thyssenkrupp acknowledged that the company’s Russian and Ukrainian sales are not significant at less than one percent of overall sales. However, the firm said that it anticipated business being affected by the geopolitical effects and far-reaching macroeconomic implications of the conflict in Ukraine.

Last month, Thyssenkrupp had said it expected free cash flow before M&A to break even for 2021/22.

“Against this background – in particular due to rising raw material prices – Thyssenkrupp AG (DE:) suspends its forecast for free cash flow before M&A for fiscal year 2021/2022,” it said, adding the exact extent of consequences of the war were very uncertain.

According to it, the business environment in the first quarter and second quarters of fiscal year was as expected up until the outbreak of war.

Thyssenkrupp stated in February that it expects an EBIT of 1.5 billion to 1.8 billion Euros and net income at least one billion Euros for the period 2021/22.

It stated that March saw initial negative effects primarily in steel and automotive suppliers businesses. However, the board expected the adjusted EBIT for quarter two to surpass the prior quarter.