Steel distribution group Klöckner & Co expects a gentle recovery of demand, and higher shipments in the second quarter of the year, especially in Europe.
Its outlook is cautiously upbeat about the developments in Europe as well as Americas. On the main customer industries on both continents – construction, transportation machinery, energy – it expects a growth rate of 1-2%.
For the second quarter, the company expects a slight increase in shipments and a considerable increase in revenue compared to the preceding quarter.
In the first quarter, shipments came to 1.1 million tonnes, down 6.4% from the prior-year quarter. However, the drop is primarily attributable to the divestment of eight distribution sites in the US completed at the end of 2025. On a comparable basis, year-on-year volumes rose by 2.1%.
A drop in the Kloeckner Metals Americas segment was partly offset by the positive development of Kloeckner Metals Europe. Here, the group achieved a volume growth of 4.3%, “which is remarkably positive after three years of recession”, chief executive Guido Kerkhoff said during an online conference, monitored by Kallanish.
Group revenue was €1.6 billion ($1.9 billion) in the first three months, down 5.9% compared with the prior-year period, mainly due to lower shipments. When adjusted for the divestment, revenue increased by 2.1%.
Operating income (Ebitda) before material special effects rose by 5% year-on-year to €46 million, including significantly positive contributions from its remaining traditional European markets of Germany and Switzerland.
Author: Christian Koehl
