In the second quarter prices for steel and metal products have seen a clear recovery accompanied by a slight rise in demand, both in Europe and the US – the relevant markets for Klöckner & Co.
Supported by a further optimized inventory management, based on close ties with main suppliers and digital pricing tools within sales, Klöckner & Co was able to benefit stronger than initially expected from the positive market development.
On the basis of preliminary figures, operating income (EBITDA) for the second quarter is now expected to be in the order of around €70 million, thereby exceeding the guidance of €50m to €60m.
An increase of EBITDA compared to previous year’s figure is expected for the third quarter as well, despite the current consolidation of steel prices. Thereby, also for the year as a whole, the expectation of a considerable increase in EBITDA compared to the previous year’s figure adjusted for restructuring expenses is confirmed.
The complete interim report as of June 30, 2016 containing the final figures will be published on August 4, 2016.
Source: Klöckner & Co SE