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KLÖCKNER & CO SE ON STRONG UPWARD TREND IN FIRST NINE MONTHS OF 2014 - Seite 2
the Europe segment rose by 1.4% compared with the first nine months of
2013. Mainly due to measures taken within the Group and despite the fact
that market conditions remained very difficult, especially in France and
Spain, EBITDA climbed by 34%, from EUR68 million to EUR91 million.
In the Americas segment, sales were 2.2% down on the prior-year period.
However, on a constant exchange rate basis, this represented a slight
increase in segment sales - despite the long and difficult winter in the
USA, the consolidation of locations toward the end of last year, the drive
to scale back low-margin business and margin-based pricing. Segment EBITDA
accordingly improved by 39%, from EUR58 million to EUR81 million.
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Further progress in digitalization strategy
Recent months have seen Klöckner & Co push ahead with the digitalization
drive that forms part of the "Klöckner & Co 2020" long-term growth
strategy.
Work at the pilot facility in Regensburg on developing innovative tools in
collaboration with customers has started to deliver results. A raft of
solutions that significantly extend our service portfolio have already
reached the implementation stage.
Gisbert Rühl: "We are pushing the digitalization of our value chain, with
the focus on customer benefits, and in doing so we have shown there is
still plenty of room for innovation even in a somewhat conservative
industry like ours."
Outlook
Klöckner & Co expects that European steel demand will rise by 2% in the
current year. In light of the fact that economic indicators have weakened
recently, the growth forecast is at the lower end of the previously
predicted range of 2% to 3%. For the USA, Klöckner & Co is raising its
growth forecast to 5% to 6% (previously: 4% to 5%) due to the still very
robust state of the automotive industry and the upturn in commercial
construction, which continues to gain momentum.
Given a seasonal decline in demand and the recent deterioration of the
economic outlook for Europe, Klöckner & Co expects to see shipments down in
the fourth quarter compared with the third quarter. In addition, falling
steel prices in the USA are adversely affecting earnings in the Americas
segment. In total, EBITDA in the final quarter is expected to be between
EUR30 million and EUR40 million. Klöckner & Co is therefore fine-tuning its
EBITDA guidance for the year as a whole to between EUR190 million and
EUR200 million.
Gisbert Rühl: "In light of the anticipated significant improvement in
earnings, we plan to resume dividend payments for fiscal year 2014."
About Klöckner & Co:
Klöckner & Co is the largest producer-independent distributor of steel and
Recent months have seen Klöckner & Co push ahead with the digitalization
drive that forms part of the "Klöckner & Co 2020" long-term growth
strategy.
Work at the pilot facility in Regensburg on developing innovative tools in
collaboration with customers has started to deliver results. A raft of
solutions that significantly extend our service portfolio have already
reached the implementation stage.
Gisbert Rühl: "We are pushing the digitalization of our value chain, with
the focus on customer benefits, and in doing so we have shown there is
still plenty of room for innovation even in a somewhat conservative
industry like ours."
Outlook
Klöckner & Co expects that European steel demand will rise by 2% in the
current year. In light of the fact that economic indicators have weakened
recently, the growth forecast is at the lower end of the previously
predicted range of 2% to 3%. For the USA, Klöckner & Co is raising its
growth forecast to 5% to 6% (previously: 4% to 5%) due to the still very
robust state of the automotive industry and the upturn in commercial
construction, which continues to gain momentum.
Given a seasonal decline in demand and the recent deterioration of the
economic outlook for Europe, Klöckner & Co expects to see shipments down in
the fourth quarter compared with the third quarter. In addition, falling
steel prices in the USA are adversely affecting earnings in the Americas
segment. In total, EBITDA in the final quarter is expected to be between
EUR30 million and EUR40 million. Klöckner & Co is therefore fine-tuning its
EBITDA guidance for the year as a whole to between EUR190 million and
EUR200 million.
Gisbert Rühl: "In light of the anticipated significant improvement in
earnings, we plan to resume dividend payments for fiscal year 2014."
About Klöckner & Co:
Klöckner & Co is the largest producer-independent distributor of steel and
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