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Klöckner & Co SE Newsfeed http://www.kloeckner.de/en/media/financial-news.php News from Klöckner & Co SE en Tue, 15 Nov 2011 17:05:00 +0100 09/11/2011:00 +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.

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 <![CDATA[Klöckner & Co adopts profitability action plan, expects boost to EBITDA in mid double-digit millions of euros]]> http://www.kloeckner.de/en/media/financial-news-3220.php Duisburg, September 7, 2011 – As announced on presentation of the half-year results on August 10, the Management Board of Klöckner & Co SE has responded to the revised expectations for global economic growth with a profitability action plan. Alongside measures to cut administration costs and overheads, the initiatives notably center on structural changes in the country organizations. This includes discontinuing business segments where target operating margins no longer appear likely to be attained in the medium term due to the changed operating environment. Klöckner & Co expects that the action plan will deliver an annual boost to operating income in the mid double-digit millions of euros. The one-off expenditure required to achieve this lies in the low double-digit millions of euros and will be financed in full out of disposal proceeds. Despite the discontinuation of business segments with sales in the mid triple-digit millions of euros, the Management Board of Klöckner & Co is continuing its "Klöckner & Co 2020" growth strategy.

Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: “Even though the current volume development is still in line with expectations, by responding early to the global economic growth slowdown we want to be sure that we regain our EBITDA margin target of 6% as soon as possible.”

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

]]> 33548C34F7014B24A9D94B352A670CD4 07/09/2011 08:40:00 +0100 <![CDATA[Klöckner & Co SE: Half-year operating income (EBITDA) shaped by contrary steel cycles during first and second quarter. Major boost in sales volumes and sales. Capital increase successful. ]]> http://www.kloeckner.de/en/media/financial-news-3200.php Outlook of more than 25% sales and sales volume growth confirmed unless fallback to recession occurs.

Sales volumes increased compared with first half of 2010 by 24.1% to 3.3 million tons (Q2: 1.8 million tons compared with 1.4 million tons in Q2 2010)
Sales up by 40.8% compared with the prior-year period to approximately €3.5 billion (Q2: €1.9 billion compared with €1.4 billion in Q2 2010)
Operating income (EBITDA) improved from €129 million in prior-year period to €166 million; however, second-quarter EBITDA, at €62 million, down on €100 million prior-year figure
Net income at €50 million, compared with €49 million in prior-year period
Earnings per share at €0.69, compared with €0.71 in comparative prior-year period
Successful capital increase with net proceeds of €517 million lays foundation for further growth

All figures for first six months compared with same period of prior year

Duisburg, August 10, 2011: After healthy growth in operating income (EBITDA) in the first quarter of 2011, the second quarter brought a visible decrease in earnings momentum with EBITDA of €62 million. This development largely reflected the downtrend in steel prices, which after a sharp rise in the first quarter came under pressure in the second. However, the second quarter also brought a further major boost to sales volumes and sales, notably from the acquisition of Macsteel Service Centers USA ("MSCUSA").

Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: “After a first quarter that saw us start the year with a tailwind, the economic recovery visibly lost speed in the second quarter and even slowed right down toward the end, with prices in part dropping sharply. Our customers showed a certain reluctance to make purchases because they expected prices to continue downwards. This also put increasing pressure on margins. Although there is once more considerably greater uncertainty, we confirm our outlook of more than 25% growth in sales volumes and sales in 2011, provided that current developments on the global capital markets do not lead back into a recession.”

Strong growth in sales volumes and sales
Sustained robust demand from year to year and notably the two acquisitions enabled Klöckner & Co to generate sales volumes of 3.3 million tons in the first six months of 2011, a substantial 24.1% more than in the prior-year period (2.6 million tons). Sales volumes gained 13.8% in Europe and 62.3% in the Americas segment compared with the prior-year figures. Adjusted for the acquisitions in 2010 and 2011, sales volumes in the Americas segment were up 16.1% on the prior-year period, while adjusted sales volumes for the Group as a whole rose by 8.6%. With a year-on-year rise in average prices despite the current falling price trend, sales grew more strongly than sales volumes. Group sales totaled some €3.5 billion in the first half of 2011, an increase of 40.8% – excluding acquisitions, 26.1% – compared with the first half of 2010.

During the second quarter, falling prices and associated customer reluctance to purchase exerted noticeable pressure on margins. Combined with mainly price-related inventory writedowns toward the end of the reporting period, this led to a gross profit margin that at 19.9% was significantly down on the 23.0% in the prior-year period. Operating income (EBITDA) was increased – mainly as a result of the good business situation in the first quarter of 2011 – from €129 million in the first half of 2010 to €166 million (an increase of 28.5%) in the first half of 2011. This corresponds to an EBITDA margin of 4.8% (HY1/2010: 5.3%). In the second quarter, however, EBITDA was down at €62 million compared with €100 million in the prior-year period, due to a significant extent to €15 million in inventory writedowns. EBIT in the first six months of 2011 came to €122 million (HY1/2010: €89 million) and tracked the trend in EBITDA. Earnings before taxes (EBT) came to €81 million, compared with €57 million in the prior-year period. Klöckner & Co generated net income of €50 million (HY1/2010: €49 million). Basic earnings per share stood at €0.69, compared with €0.71 in the prior-year period.

Strong balance sheet and financing structure maintained
The changes in the statement of financial position are mainly shaped by the acquisitions of MSCUSA and Frefer completed in the second quarter and by the capital increase. Total assets increased as a result by 41.4% to €4,936 million. Acquisition accounting and higher sales volumes increased resources tied up in net working capital to €1,713 million, compared with €1,017 million at the end of fiscal 2010. The inflow of resources from the capital increase was a key factor in maintaining liquid funds at the high level of €1,035 million, compared with €935 million as of December 31, 2010, despite the cash outflow on payment of the purchase price for MSCUSA and Frefer and the higher net working capital. The equity ratio came to some 37% as of June 30, 2011, on a par with the 2010 fiscal year-end. After payment of the purchase price for the two acquisitions and after the share issue, net financial debt stood at €600 million, compared with €137 million at the end of the prior fiscal year.

Milestones in the first half of 2011 in implementation of the strategy "Klöckner & Co 2020"
The second quarter saw Klöckner & Co attain three milestones in the strategy "Klöckner & Co 2020" presented in October last year:

1. The acquisition of Macsteel Service Centers USA (“MSCUSA”) was completed at the end of April. MSCUSA is one of the leading flat steel service center companies in the USA, with sales of some USD 1.3 billion in 2010. The acquisition doubles Klöckner & Co’s sales and number of locations in North America. It adds flat products to a product range previously focused on long products and heavy plate. Klöckner & Co is now among the market leaders in all three product segments in the USA and has moved up to become the third largest steel and metal distributor in North America. Integration of the company into the existing US country organization proceeds apace. The potential synergies are estimated to be significantly bigger than initially expected. The US country organization will operate in the future under a single brand and is now the largest in the Group, with 30% of sales.

2. At the end of May, Klöckner & Co acquired a 70% share in the Frefer Group, Brazil (“Frefer”). With approximately 360 employees at 14 locations, the group generated sales of some BRL 340 million (about €150 million) in 2010. The move marks Klöckner & Co’s entry into the fast-growing emerging economies of South America.

3. The 50% capital increase was successfully carried out in June and generated net proceeds of €517 million, which will mainly be used to continue the "Klöckner & Co 2020" growth strategy.

Outlook
Regarding business performance in 2011, despite the global economic slowdown and provided that the current developments on global capital markets do not lead back into a recession, Klöckner & Co continues to anticipate growth of more than 25% in sales volumes and sales, with acquisitions contributing significantly to the increase. The Company projects a slight seasonal reduction in demand in the third quarter. Earnings are consequently expected to be below the second quarter for seasonal reasons. For the fourth quarter, and accordingly for the full year, an earnings forecast is currently subject to great uncertainty. Against this background Klöckner & Co does not further expect to reach its medium-term target EBITDA margin of 6% already for the current year.

Gisbert Rühl: “In acquiring MSCUSA and Frefer in Brazil, we have systematically pushed ahead our long-term growth strategy “Klöckner & Co 2020” and laid key groundwork for the onward development of Klöckner & Co. The capital increase successfully completed in June additionally lays the foundation for us to continue pursuing our “Klöckner & Co 2020” growth strategy with ambitious targets.”

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.

]]> 61A31A8D5180410D9E5A6F873F70416E 10/08/2011 08:50:00 +0100