Thyssenkrupp’s operating profit plunged in the second quarter, hurt by what the German conglomerate said was high economic uncertainty among most of its customers and regions, most notably in automotive and steel.

Shares in the submarines-to-car parts group were indicated 3.5% lower in pre-market trade following a 90% drop in quarterly adjusted EBIT to 19 million euros ($21 million), far below the 146 million average forecast in a poll provided by the company.

Thyssenkrupp, through its sprawling global structure that also covers materials trading and hydrogen, is exposed to global trade frictions and on Thursday warned that tariffs would negatively impact global automotive production in 2025.

“The introduction of universal import tariffs and individual customs tariffs for major trading partners like the EU and China are having a negative impact on global trade and destabilising international supply chains,” the group said in its first-half report.

Thyssenkrupp’s steel division, in which Czech billionaire Daniel Kretinsky owns 20%, swung to a 23-million-euro loss, compared with a 68-million profit last year, also hit by maintenance-related outages.

The German conglomerate said it still expects adjusted operating profit (EBIT) of 600 million to 1 billion euros and free cash flow before M&A of between 0 and 300 million euros.

Second-quarter adjusted EBIT at the group’s submarine division, which is currently being prepared for a spin-off later this year, rose 24% to 31 million euros.

“In the second half of the year, we are expecting a more stable market environment and positive effects from the measures we have initiated,” Thyssenkrupp CEO Miguel Lopez said.

($1 = 0.8934 euros)