*

Now expects net loss vs break even in 2023/24

*

Books impairments on materials trading division

*

Thyssenkrupp shares -5.7%, Thyssenkrupp Nucera -8%

(Adds details on tariff discussion in paragraph)

By Christoph Steitz and Tom Käckenhoff

FRANKFURT, May 15 (Reuters) - German conglomerate

Thyssenkrupp cut its annual forecasts for sales and

net profit for the second time in three months, blaming lower

demand and prices at its steel unit and impairments at its

materials trading division.

Shares sank 5.7% in morning trading following its

downgraded outlook.

The scaled-back guidance underscores a challenging

environment for companies focused on capital goods, which need

to tackle elevated inflation, raw materials price swings and

cooling global demand.

This includes cheap Asian steel imports that have been a key

driver behind efforts to win Czech billionaire Daniel Kretinsky

as a co-owner of Thyssenkrupp's steel division, Germany's

largest, hoping this would make the business more competitive.

Thyssenkrupp is in talks with Brussels about tightening

import conditions to support the local steel sector, CEO Miguel

Lopez said, amid a cloudy global environment in which tariffs

have become more frequent.

Highlighting a "gloomy market environment", Lopez said the

company had made progress with its turnaround since the start of

the year, singling out steps to spin off its marine divisions,

which may be sold to private equity firm Carlyle.

Thyssenkrupp, which makes submarines, car parts and bearings

for the wind industry, now expects an annual net loss in the low

triple-digit millions of euros for the fiscal year to September,

it said on Wednesday, having previously forecast breaking even.

According to LSEG data, analysts on average expect a net

profit of 203 million euros ($220 million) in the year to

September. The company had already cut its outlook when it

released first-quarter results in February.

Weakening demand led to impairments at its materials trading

division, the company said, without specifying the amount.

Additional headwinds came from lower-than-expected quarterly

results at Thyssenkrupp Nucera, in which Thyssenkrupp

owns a majority, shares in which traded 8% lower.

($1 = 0.9245 euros)