Klöckner & Co SE Newsfeed http://www.kloeckner.de/en/media/financial-news.php News from Klöckner & Co SE en Wed, 9 May 2012 07:25:00 +0100 09/05/2012:00 +0100 <![CDATA[Klöckner & Co SE: Performance positive in North America but weak in Europe, EBITDA €45 million, further progress in implementing profitability action plan, EBITDA guidance for Q2 €50 to €60 million]]> http://www.kloeckner.de/en/media/financial-news-3830.php
  • Turnover raised by 24.0% to 1.9 million tons and sales by 22.6% to some €1.9 billion due to acquisitions
  • EBITDA €45 million, compared with €104 million boosted by windfall profits in prior year
  • Net income accordingly €–10 million, compared with €44 million in prior year
  • Earnings per share a €–0.10 as against a €0.65 in prior year
  • Profitability action plan on track
  • EBITDA guidance for Q2 €50 to €60 million with further improvement in turnover compared with Q1
  • Full-year guidance: Turnover growth of 5% and also sales above prior year; increase in EBITDA only attainable, if economic environment in Europe improves in second half-year

Figures relate to first three months relative to first three months of prior year

Duisburg, May 9, 2012 – Turnover and sales sharply increased in Q1 2012, primarily due to the acquisition of Macsteel Service Centers USA. At €45 million, operating income (EBITDA) was down on the strong first quarter of 2011 – which was boosted by windfall profits – but €31 million up on the preceding quarter and so within the forecast range of €40 to €50 million.

Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: “The Macsteel acquisition meant we could particularly benefit from the robust economic trend in the USA. In Europe, as we expected, the environment remains difficult. With substantial overcapacity dominating the market, competition is very fierce. On top of this, customers continue to be unsettled by the ongoing sovereign debt crisis.”

Strong growth in turnover and sales, earnings down on prior year
Klöckner & Co increased turnover in the first three months of fiscal 2012 by 24.0% to 1.9 million tons compared with the prior-year quarter (1.5 million tons), as a result of acquisitions. Compared with Q4 2011, turnover showed an increase of 13.5% due to the seasonal upturn in business.

The divergent trend in the turnover performance of the Europe and Americas segments experienced in 2011 continued in even more pronounced form in the first quarter. In the Europe segment, turnover was 5.1% down on the prior year owing to the difficult economic environment and portfolio streamlining. Germany was the only country where Klöckner & Co generated slight growth in turnover, whereas business conducted in Spain once again declined substantially.

In contrast, turnover in the Americas segment increased by 125.4% compared with Q1 2011, mainly due to the acquisition of Macsteel. Also on an organic basis, however, Americas segment turnover was well ahead of both, the market and the prior-year period, with growth of 11.8%. Organic turnover for the Group as a whole showed a slight 1.4% decrease due to the ground lost in Europe.

Sales followed the trend in turnover, increasing by 22.6% relative to the prior-year period to some €1.9 billion in Q1 2012. Excluding acquisitions, Group sales were broadly on a par with the prior year (–0.5%).

Operating income (EBITDA), at €45 million, was below the prior-year figure of €104 million – which was boosted by large windfall profits – but tripled compared with the figure for Q4 2011. EBIT for the first three months of the fiscal year came to €18 million (Q1 2011: €86 million) and earnings before taxes (EBT) to €–6 million (Q1 2011: €66 million). Net income accordingly dropped from €44 million to €–10 million. Basic earnings per share came to €–0.10, compared with a €0.65 in the prior-year quarter.

Strong balance sheet and financing structure retained
Total assets increased reflecting the usual seasonal upturn in business activity following the winter. The main driver behind the increase was a rise in funds tied up in net working capital from €1,534 million to €1,656 million. The increased need for net working capital was also reflected in net financial debt, which rose as expected from €471 million at the year-end to €573 million. Net financial debt was nonetheless kept low relative to equity, with gearing of 35%. The equity ratio stood at roughly 38% as of March 31, 2012, compared with 39% at the 2011 year-end. Liquidity remains at a high level of €937 million, compared with €987 million as of December 31, 2011.

Further progress on profitability action plan
Back in September 2011, Klöckner & Co responded to the reduced growth forecasts as a result of the ongoing sovereign debt crisis in Europe by initiating a profitability action plan. Alongside cuts in administration costs and sales overheads, the plan centers on the discontinuation of insufficiently profitable business activities. The number of jobs in Europe is to be cut by 700 as a result. Some 400 jobs had been cut by the end of the first quarter. Initial steps were also completed in the first quarter to close unprofitable locations and business activities. Subsidiaries in Spain and Eastern Europe are particularly affected. The profitability improvement measures will be fully implemented by the middle of the year. Alongside implementation of the restructuring measures in Europe, an additional focus was on the further integration of Macsteel. To this end, the branding was standardized, management structures, administration and procurement brought together, and the groundwork laid for IT integration in the second quarter. In addition to the increased significance of the US business, the considerable synergies and cross-selling effects resulting from completion of the integration are leading to an above-average contribution to earnings from the Americas segment.

Outlook for 2012
For fiscal year 2012 Klöckner & Co continues to expect a rise in turnover by 5% and also a rise in sales compared with the prior year. The increase is expected – despite portfolio streamlining measures and the weak market development in Europe – to be achieved by last year's acquisitions. The targeted improvement in operating income (EBITDA) for the full year is only achievable if the economic environment in Europe improves in the second half-year. If not, the Company expects from today’s perspective that operating income will be broadly on a par with the prior year. An expected increase in EBITDA in the USA from the Macsteel acquisition and a more robust overall economic trend would be countered here – along with the earnings improvement from the profitability action plan – by weaker operating performance in Europe.

For the second quarter, the Company anticipates operating income (EBITDA) of between €50 and €60 million, provided the economic growth prospects do not further deteriorate in Europe and prices for steel products do not plummet. The Americas segment will once again make an above-average contribution to this result compared to their sales impact.

While the first half of the year is focused entirely on implementing the profitability action plan in Europe and completing the integration of Macsteel acquired in the prior year, Klöckner & Co’s financial headroom and solid balance sheet mean the company is best placed to continue its long-term growth strategy, “Klöckner & Co 2020”, in the second half of the year.



About Klöckner & Co
Klöckner & Co is the largest producer-independent distributor of steel and metal products and one of the leading steel service center companies in the European and American markets combined. The core business of the Klöckner & Co Group is the warehousing and distribution of steel and nonferrous metals as well as the operation of steel service centers. Based on the Group's distribution and service network, more than 170,000 customers are supplied through around 290 locations in more than 20 countries. Currently Klöckner & Co employs around 11,200 employees. The Group had sales of around €7.1 billion in the fiscal year 2011.

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®-Index of Deutsche Börse.

ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

Contact:
Dr. Thilo Theilen – Press Spokesperson
Head of Investor Relations & Corporate Communications
Telephone: +49 (0) 203-307-2050
Fax: +49 (0) 203-307-5025
Email: thilo.theilen@kloeckner.de

]]> 5E5C025033654AB39C09A0E6653B3301 09/05/2012 18:32:00 +0100 <![CDATA[Klöckner & Co SE in 2011: turnover and sales rise sharply, net income slightly positive]]> http://www.kloeckner.de/en/media/financial-news-3403.php
  • Turnover rises sharply by 25.4% to 6.7 million tons and sales by 36.5% to
    €7.1 billion supported by acquisitions
  • EBITDA declines by €21 million, from €238 million to €217 million
  • Net income at €10 million, down significantly on the prior-year figure of €80 million due to depreciation, amortization and interest charges increased by acquisitions and a higher tax rate
  • Basic earnings per share at €0.14 compared with €1.17 a year earlier
  • “Klöckner & Co 2020” strategy implemented systematically with two significant acquisitions: Macsteel Service Centers USA and Frefer in Brazil
  • Immediate response to the economic slowdown with an action plan
  • Successful capital increase with net proceeds of €516 million

    Outlook for 2012:

  • Turnover and sales expected to rise despite adverse economic conditions in Europe due to the expansion of activities in North America
  • Although the uncertain economic environment means it is currently
    impossible to issue a reliable earnings forecast, the comprehensive action plan in Europe together with growth in the US should enable an improvement
    in operating income

    • Duisburg, March 7, 2012 –Supported by the acquisitions of Macsteel Service Centers USA and Frefer, turnover and sales rose sharply in fiscal 2011, enabling the Company to lift sales above €7 billion for the first time in its more recent history. Its earnings development during the year was non-uniform, however. While first-quarter operating income was significantly higher year on year, earnings momentum then slowed noticeably in subsequent quarters as the economy continued to cool. The worsening sovereign debt crisis in Europe and the resulting uncertainty were primary contributors to the economic slowdown.

    Gisbert Rühl, Chairman of the Management Board of Klöckner&Co SE: “While, in the first half of 2011, we systematically implemented our ‘Klöckner&Co 2020’ growth strategy, acquiring Macsteel Service Centers in the USA and Frefer in Brazil, the focus in the second half of the year was on measures to increase profitability in response to the cooling economy.”

    Turnover and sales rise sharply, net income slightly positive
    Klöckner & Co lifted turnover by 25.4 % in fiscal 2011 to 6.7 million tons. This was due primarily to the acquisitions it completed, although turnover in the USA also increased significantly after adjustment for acquisitions. In Europe, turnover went up by 5.5%. In the Americas segment, it almost doubled due to the acquisition of Macsteel Service Centers USA and Frefer in Brazil. Adjusted for the acquisitions in 2010 and 2011, turnover was up year on year by 1.3% in Europe, 14.6% in the Americas and 4.6% for the Group as a whole. Overall, due to higher prices, sales grew at a faster pace than turnover, climbing by 36.5% to €7.1 billion. Without the acquisitions in 2010 and 2011, sales growth would have been 17.1%.

    Operating income (EBITDA) was €21 million down on the prior-year figure of
    €238 million at €217 million. EBIT and earnings before taxes (EBT) were therefore
    €111 million (2010: €152 million) and €27 million (2010: €84 million) respectively. Net income dropped from €80 million to €10 million. In addition to the decline in EBITDA, this was due primarily to depreciation, amortization and interest charges increased by acquisitions and a higher tax burden. Basic earnings per share were €0.14 compared with €1.17 a year earlier.

    Financial headroom further increased and fine-tuned
    The increase from €1,017 million to €1,534 million in funds tied up in net working capital was also driven primarily by the acquisitions. Net financial debt increased from €137 million in 2010 to a total of €471 million. Expressed as a percentage of equity, however, net financial debt remained at a low level, resulting in a gearing of 29%.

    The Company strengthened its financing position and balance sheet through a successful capital increase with net proceeds of €516 million. In spite of the acquisitions and resulting increase in debt, the equity ratio rose from 37% to 39%, while total assets climbed to €4,706 million. In addition, the Company once again increased its financial headroom by issuing promissory notes and extended the term of central financing instruments. The Group therefore has access to facilities
    of €2.7 billion in total, only 55% of which have currently been used.

    “Klöckner & Co 2020” strategy: two major acquisitions in the first half of the year, profitability action plan launched in second half of the year
    In 2011, Klöckner & Co continued to systematically implement “Klöckner & Co 2020”, the long-term growth strategy presented in the fall of 2010: By acquiring Macsteel Service Centers USA and a majority interest in Frefer in Brazil as well as by opening a first steel service center in China, it substantially increased the proportion of service center business within the Group, significantly expanded its market position in the USA and made its entry into attractive emerging markets.

    The Company responded immediately to the deteriorating economic environment in the second half of the year by initiating a further action plan to increase profitability. Alongside cuts in administration costs and sales overheads, which are to be achieved primarily by reducing headcount by at least 6%, the plan centers on structural changes, including the discontinuation of insufficiently profitable business activities.

    Outlook for 2012: increase in share of sales generated in North America to have positive effects
    Klöckner & Co expects turnover and sales to rise in 2012, particularly as a result of the expansion of its activities in North America. In the Europe segment, turnover and sales will be depressed by the generally anticipated decline in economic output. For the Americas segment, the Company anticipates further robust growth in gross domestic product, leading to a rise in steel turnover. Earnings in the Americas segment are also expected to show a significant improvement, while the measures to increase profitability mainly in Europe are aimed at cushioning against the negative impact of a decline in turnover.

    Gisbert Rühl: “2012 will be no less challenging than 2011. Although it is currently impossible to issue a reliable forecast for the full year in light of the uncertain economic environment, the timely expansion of our activities in Americas and our comprehensive profitability action plan should enable us to increase turnover, sales and operating income in 2012.”



    About Klöckner & Co
    Klöckner & Co is the largest producer-independent distributor of steel and metal products and one of the leading steel service center companies in the European and American markets combined. The core business of the Klöckner & Co Group is the warehousing and distribution of steel and nonferrous metals as well as the operation of steel service centers. More than 170,000 customers are supplied through around 290 distribution and service locations by about 11,400 employees in more than 20 countries. The Company had sales of around €7.1 billion in the fiscal year 2011.

    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®-Index of Deutsche Börse.

    ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

    Contact:
    Dr. Thilo Theilen – Press Spokesperson
    Head of Investor Relations & Corporate Communications
    Telephone: +49 (0) 203-307-2050
    Fax: +49 (0) 203-307-5025
    Email: thilo.theilen@kloeckner.de]]>     D0C1E5224AE046B48A90D76E004C8401 07/03/2012 09:11:00 +0100     <![CDATA[Sales volumes, sales and operating income (EBITDA) increased with support from acquisitions but developments marked by increasing uncertainty and economic slowdown. Outlook of more than 25% sales and sales volume growth confirmed.]]> http://www.kloeckner.de/en/media/financial-news-3265.php
  • Sales volumes increased mainly as a result of acquisitions by 25.8% to 5.0 million tons (Q3: 1.8 million tons, compared with 1.4 million tons in Q3 2010)
  • Sales 38.6% up to some €5.4 billion (Q3: €1.9 billion, compared with €1.4 billion in Q3 2010)
  • Operating income (EBITDA) improved from €190 million in prior year to €203 million (Q3 EBITDA: €37 million, significantly below Q3 2010 figure of €61 million)
  • Net income down from €63 million in prior year to €38 million, largely due to higher depreciation and amortization as a result of acquisitions, higher financing charges and higher taxes (Q3: €– 12 million; compared with €15 million in Q3 2010)
  • Earnings per share €0.47, compared with €0.92 in the prior-year period
    • All figures relate to the first nine months of 2011 relative to the same period of the prior year

    Duisburg, November 9, 2011: The business situation throughout the year and especially in the third quarter has been visibly affected by the economic slowdown. While cumulative operating income (EBITDA), at €203 million, is up on the prior-year period, the earnings trend is unsatisfactory and remains negative. After €104 million in the first and €62 million in the second quarter, operating income (EBITDA) fell in the third quarter to €37 million. The drop in operating income partly reflected the customary seasonal softening of demand in the summer months, but partly also the economic slowdown which hasn't resulted in the usual end-of-summer recovery. In addition, producers generally failed in their attempts to stabilize prices, and this put a squeeze on margins. Customers were accordingly more cautious whereby margins came increasingly under pressure.

    Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: “As expected, we are moving into increasingly choppy economic waters. Risks are increasing, customers are being cautious. That clearly shows through in our earnings performance.”

    Robust sales volume and sales growth, unsatisfactory earnings trend
    Klöckner & Co increased sales volumes by 25.8% from 4.0 million tons in the prior-year period to 5.0 million tons in the first nine months of 2011. Sales volumes gained 8.5% in Europe and 90.5% in the Americas segment compared with the prior-year figures. Adjusted for the business acquisitions in 2010 and 2011, sales volumes were up 16.9% on the prior-year period in the Americas segment and 3.2% in the Europe segment, while adjusted sales volumes for the Group as a whole rose by 6.5%. The third quarter saw only slight organic growth in sales volumes relative to the prior-year period – kept up solely by growth in the USA, while sales volumes in Europe already showed a slight decrease.

    Despite a falling price trend, average selling prices were above the prior-year level, as a result of which sales grew more strongly than sales volumes, increasing by 38.6% from €3.9 billion to €5.4 billion. Excluding the effects of the acquisitions, sales increased by 20.7%, likewise with a decreasing trend in the third quarter, when sales growth was down to 10.9%.

    The gross profit margin fell continuously through the year. At 18.8%, the figure for the first nine months was significantly down on the 22.3% prior-year level in line with the economic and price situation; the third quarter saw the margin fall to its lowest level for the year at 16.8%. It became ever harder to keep margins up at adequate levels in the market as increasingly fierce competition chased shrinking market volumes compounded by a backdrop of sinking prices. Operating income (EBITDA) increased – mainly as a result of the good business situation in the first quarter of 2011 – from
    €190 million in the first nine months of 2010 to €203 million in the first nine months of 2011 (an increase of 6.8%). The consolidation of Macsteel Service Centers USA (MSCUSA) contributed to this increase. EBITDA is on a pronounced downward trend, however, decreasing from €104 million in the first quarter to €62 million in the second and only €37 million in the third.

    EBIT came to €129 million in the first nine months, about on a par with the prior-year period figure of €127 million. Higher finance expenses as a result of a rise in debt meant that Group earnings before taxes, at €66 million, was down on the €79 million figure for the prior-year period. Net income decreased to €38 million due to a higher tax burden (2010: €63 million). Basic earnings per share consequently stood at €0.47, compared with €0.92 in the prior-year period.

    Total assets increased mainly as a result of the acquisitions and also due to the rights issue by 41.8% to €4,950 million. With an equity ratio of 37%, Klöckner & Co has a sound financial position with a balanced and long-term maturities profile in non-current liabilities.

    Profitability action plan
    After signs of the economic slowdown accelerated over the course of the third quarter, Klöckner & Co immediately initiated a comprehensive action plan. Alongside cuts in administration costs and overheads, the plan centers on structural changes in the country organizations, including the discontinuation of insufficiently profitable business activities. The plan is expected to deliver an annual contribution to operating income in the mid double-digit millions of euros. The total one-off costs required to achieve this is expected to be in the low double-digit millions of euros and will be financed in full out of disposal proceeds. While potentially discontinuing business activities, the company is holding to its “Klöckner & Co 2020” growth strategy.

    Outlook
    For fiscal 2011, despite softening demand, Klöckner & Co continues to anticipate year-on-year growth of more than 25% in sales volumes and more than 35% in sales, largely thanks to the contributions made by the acquisitions.

    Given the weak demand trend and the sustained price pressure, the Company projects that fourth-quarter operating income (EBITDA) will be down on the third quarter. Restructuring costs in the low double-digit millions of euros will have an additional impact on income.

    For 2012, Klöckner & Co currently expects rising demand for steel in North and South America and at best stable demand for steel in Europe, with risks due to the sovereign debt crisis in the euro zone remaining high. In light of this, the 6% long-term EBITDA margin target will not yet be attained in the next year. The initial restructuring measures will, however, contribute to achieving this target as soon as possible thereafter.

    Gisbert Rühl: “We confirm our outlook of over 25% sales volume growth and more than 35% sales growth this year. It will not be possible to stop the earnings trend, however, and we expect a further decrease in EBITDA in the fourth quarter. We are nonetheless well equipped to carry ourselves through a potentially sustained lean period and in the process to carve out options for further growth.”


    About Klöckner & Co:
    Klöckner & Co is the largest producer-independent distributor of steel and metal products and one of the leading steel service center companies in the European and American markets combined. The core business of the Klöckner & Co Group is the warehousing and distribution of steel and non-ferrous metals as well as the operation of steel service centers. More than 170,000 active customers are supplied through around 290 distribution and service locations by around 11,000 employees in 16 countries in Europe and America. The Company had sales of around €5.2 billion in the fiscal year 2010.

    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®-Index of Deutsche Börse.

    ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

    Contact:
    Dr. Thilo Theilen – Press Spokesperson
    Head of Investor Relations & Corporate Communications
    Telephone: +49 (0) 203-307-2050
    Fax: +49 (0) 203-307-5025
    Email: thilo.theilen@kloeckner.de

    ]]>     BEC6A82DCD76414391AF75402F0B1B34 09/11/2011 15:07:00 +0100     <![CDATA[Klöckner & Co SE expands Management Board: The Supervisory Board appoints Bill Partalis Member of the Board responsible for the Americas segment]]> http://www.kloeckner.de/en/media/financial-news-3237.php Duisburg, September 20, 2011: In today’s meeting, the Supervisory Board of Klöckner & Co SE appointed Mr. Bill Partalis third member of the Company’s Management Board. From October on, he will be representing the Americas segment on the Board. In setting up this new Management Board position, the Supervisory Board is mirroring the growth in importance of business in the Americas on the back of the Macsteel and Frefer acquisitions – business which today accounts for around a third of Group sales. Alongside his responsibility for the Americas segment, Bill Partalis will continue to oversee the operational side of US activities from Roswell, Georgia.

    Bill Partalis has been working for the US-American subsidiary of the Company for 20 years. Following numerous executive positions in the operational field, he was appointed CEO of Namasco in 2002, in which position he has played an instrumental part in the successful integration of the Primary and Temtco acquisitions. Since the takeover of Macsteel, he is additionally responsible for the combined US business.

    Bill Partalis (born in 1953) is a US citizen, married with 2 children.

    About Klöckner & Co:
    Klöckner & Co is the largest producer-independent distributor of steel and metal products and one of the leading steel service center companies in the European and American markets combined. The core business of the Klöckner & Co Group is the warehousing and distribution of steel and non-ferrous metals as well as the operation of steel service centers. More than 170,000 active customers are supplied through around 290 distribution and service locations by around 11,000 employees in 16 countries in Europe and America. The Company had sales of around €5.2 billion in the fiscal year 2010.

    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® index of Deutsche Börse.

    ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

    Contact:
    Dr. Thilo Theilen – Press Spokesperson
    Head of Investor Relations & Corporate Communications
    Telephone: +49 (0) 203-307-2050
    Fax: +49 (0) 203-307-5025
    E-mail: thilo.theilen@kloeckner.de

    ]]>     F0318F80A7184DF9A5DA71023DD221B9 20/09/2011 09:37:00 +0100