Klöckner adjusts guidance, plans job cuts

Klöckner & Co achieved an operating income (Ebitda) before material special impacts of €41 million ($49m) in the third quarter 2023, which was at the lower end of the forecast range of €40-80 million.

Hence, due to the ongoing macroeconomic weakness, especially in Europe, the German-based steel distribution group is adjusting its previous earnings forecast of €220-280m to €170-200m, Kallanish hears.

In the first nine months of the year, the company’s revenue amounted to €6.0 billion, compared with €7.4 billion in the corresponding 2022 period. Ebitda adjusted for material special impacts was €172m, versus €439m in the first nine months of 2022. Net income was a negative €8 million in the first nine months of 2023, down from a profit of €301m a year earlier.

Shipments in the third quarter came to 1.191m tonnes, up 4% y-o-y, due to acquired business in the USA. The company highlights a continued positive development of its business in North America and Switzerland. In North America, it expects improved demand in most customer sectors going forward. In Europe, it anticipates a flat development, with continued weakness in construction.

In response to the challenging macroeconomic environment in Europe, Klöckner will cut back organisations in the Kloeckner Metals EU and Kloeckner Metals Non-EU segments. Implemented step by step from the fourth quarter of 2023, it anticipates a 10% workforce reduction in the European distribution business.

At a conference call for the publication of quarterly figures, ceo Guido Kerkhoff detailed that some 300 employees will be laid off, 80 of which are in Germany. The cutbacks will be spread over the entire organisation, and no closure of individual sites is planned, Kallanish heard from Kerkhoff on the call.

Christian Koehl Germany