AI Terminal
Kloeckner & Co SE
Earnings Release • Aug 4, 2016
246_rns_2016-08-04_a51ed9fb-f272-4561-b460-b73b03895f4d.html
Earnings Release
Open in ViewerOpens in native device viewer
News Details
Corporate | 4 August 2016 07:00
Klöckner & Co SE returns to positive net income in the second quarter of 2016
DGAP-News: Klöckner & Co. SE / Key word(s): Quarter Results
2016-08-04 / 07:00
The issuer is solely responsible for the content of this announcement.
– Digital pricing tools amplify positive earnings impact of rising steel prices
– Proportion of Group sales generated via digital channels hits 10% mark
– New program “One Europe” for the European steel distribution business developed to further boost profitability
– Positive earnings trend expected to continue with an EBITDA of EUR65 to EUR75 million in
the third quarter
– Full year targets of an significantly higher EBITDA and a positive net income confirmed
Duisburg, Germany, August 4, 2016 – Klöckner & Co generated operating income (EBITDA) of EUR72 million in the second quarter of 2016, significantly improving on the prior-year operating loss of EUR17 million and hence also returning to positive figures on the bottom line with net income of EUR33 million (Q2 2015: net loss of EUR55 million). Operating income is set to stay above prior-year performance going forward, with third-quarter operating income expected to be between EUR65 and EUR75 million. The Group has confirmed its full-year targets of significantly higher EBITDA and a return to positive net income.
Gisbert Rühl, CEO of Klöckner & Co SE: “Increasing use of digital pricing tools allowed us to benefit more strongly than in the past from rising market prices for steel and metal products and, as a result, to deliver the best quarterly results in more than five years.”
Klöckner & Co also made further progress in the ongoing implementation of its digitalization strategy. In total, digital channels already accounted for some 10% of Group sales.
Over the last several years, Klöckner & Co has restructured its European distribution business at country level, downsized capacity and pooled operations. Now, under the new “One Europe” program, the activities of the country organizations in Austria, Belgium, France, Germany, the Netherlands, Spain and the United Kingdom are to be brought even closer together. The new structure not only aims to cut costs and facilitate synergies, but also to ensure faster, more efficient implementation of the digital transformation. “One Europe” is set to deliver an incremental annual EBITDA contribution of in total some EUR30 million in the next three years – thereof already EUR10 million in 2017.
About Klöckner & Co:
Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service center companies worldwide. Based on its distribution and service network of around 200 locations in 14 countries, the Group supplies more than 140,000 customers. In addition to companies in the construction industry as well as machinery and mechanical engineering, Klöckner & Co serves customers in the automotive and chemical industry, in shipbuilding and in fields of household appliances, consumer goods and energy. Currently Klöckner & Co has around 9,200 employees. The Group had sales of around EUR6.4 billion in fiscal 2015.
The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX (R) -Index of Deutsche Börse.
ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.
Contact person Klöckner & Co SE:
Christian Pokropp – Press Spokesperson
Head of Investor Relations & Corporate Communications
Phone: +49 203 3072050 
Fax: +49 203 3075025
Email: [email protected]
2016-08-04 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
| Language: | English |
| Company: | Klöckner & Co. SE |
| Am Silberpalais 1 | |
| 47057 Duisburg | |
| Germany | |
| Phone: | +49 (0)203 / 307-0 |
| Fax: | +49 (0)203 / 307-5000 |
| E-mail: | [email protected] |
| Internet: | www.kloeckner.com |
| ISIN: | DE000KC01000 |
| WKN: | KC0100 |
| Indices: | SDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |