Klöckner & Co expects a considerable increase in shipments and sales in the second quarter compared to Q1 and also forecasts increases for the full year.
The German stockholder group reported Q1 shipments of 1.1 million tonnes, up 5% on the prior-year quarter and 11% on Q4 2023. The latter was partially due to seasonal effects.
Klöckner generated sales of €1.7 billion ($1.8 billion) in Q1, down from €1.8 billion in Q1 2023, attributable to lower price levels. At €42 million, operating income (Ebitda) before material special effects was lower than the €65m in the prior-year quarter.
Looking at the company’s main markets, chief executive Guido Kerkhoff said during a conference call on Tuesday that most customer groups will be developing sideways in both Europe and North America over the coming months. He sees a slight increase in the energy industry, due to continued efforts to expand on renewables. Overall, “we are lacking a signal for an ignition to the markets. Buyers remain reserved, and the consumption climate remains subdued,” Kallanish heard him say during the call.
In March, Klöckner sold its stockholding assets in four European countries, in order to focus on service centres and other processing activities. “The more value added we offer, the better the business,” Kerkhoff said. Profitability for plain stockholding at the company was close to zero recently, but he noted that plain stockholding as such is not a bad business: “It can be a door-opener to customers,” he explained.
Christian Koehl Germany
