Earnings Release • Oct 6, 2015
Earnings Release
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News Details
Ad-hoc | 6 October 2015 19:47
Klöckner & Co. SE: Earnings in the third quarter burdened by falling prices and weak demand
Klöckner & Co. SE / Key word(s): Profit Warning/Forecast
06.10.2015 19:47
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Against the background of unexpectedly poor market conditions due to
further declining prices and a weak demand for steel and metal products,
Klöckner & Co will not meet the guidance for the third quarter. On the
basis of preliminary figures, operating income (EBITDA) before
restructuring expenses is now expected to be in the order of EUR30 million.
The original outlook of EUR45-55 million was based on the
assumption of a slight recovery of prices and robust demand. Contrary to
the general market expectation, steel prices continued to decline, mainly
due to a further decrease in quotations for Chinese steel exports. As a
result, margins came under pressure and inventory write-downs became
necessary. Furthermore, demand developed very sluggishly in anticipation of
further declining prices.
The price and volume driven burdens are expected to initially continue in
the fourth quarter. Hence, it can still be assumed for the fiscal year 2015
that operating income (EBITDA) before restructuring expenses will remain
substantially below the prior-year figure. Despite the strained earnings
situation, a positive free cash flow is to be expected for the current
fiscal year as a whole.
In fiscal 2016, operating income (EBITDA) is expected to rise significantly
again, even if the market environment remains only stable. Therefore, net
income should be noticeably positive again as well. Additional positive
development could arise from anti-dumping measures initiated in the US and
Europe, mainly against Chinese exports.
The complete interim report as of September 30, 2015 containing the final
figures will be published on November 3, 2015.
Information and Explaination of the Issuer to this News:
Issuer: Klöckner & Co SE, Am Silberpalais 1, 47057 Duisburg, Germany
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 MDAX(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
Telephone: +49 (0) 203-307-2050
Fax: +49 (0) 203-307-5025
Email: [email protected]
06.10.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and 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
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of Announcement DGAP News-Service
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