Klöckner & Co says it can benefit particularly strongly from the positive development of the steel market, and therefore expects a pre-tax result that is “…very considerably” above the prior-year quarter.
Against this background, the company expects an operating income – Ebitda – before material special effects of €110-130 million ($133-157m) in the first quarter of 2021, Kallanish learns from an ad-hoc announcement.
The recovery in steel demand has continued strongly, and price levels in Europe and the USA, the main markets of the German-based distributor, have risen significantly, it states. It also cites the successful implementation of its “Surtsey Project” for digitalisation and restructuring effects. Previously, operating income before material special effects was expected to improve only “…considerably” compared with the prior-year quarter, which was €21m.
In December, the group reported an unexpectedly strong performance in Q4. It then forecast an Ebitda before material special effects of €105-115m for full year 2020, contrary to previous expectations of €75-95m. The guidance for the fiscal year 2021 will be announced, together with the results for 2020, on 10 March.