Klöckner & Co has lifted its profit forecast for the third quarter, Kallanish learns from an ad-hoc statement from the German-based steel distribution group.
Over the course of the third quarter, the negative impact of the Covid-19 pandemic on the group’s operating business was considerably mitigated. The company attributes this to
positive digitalisation and restructuring effects, but also cites market factors. In particular, it mentions recovery in demand in its core markets of Europe and the US, especially in September, and the recently improved price environment.
Hence, contrary to the previous expectation of a pre-tax profit of €15-25 million ($17-29m) in Q3, Klöckner now expects a result of €30-40m before material special effects.
The company still expresses uncertainty about demand in Q4, but sees an overall improving price development in Europe and the USA. This has led to an increased income expectation for the full-year of €75-95m before material special effects. Klöckner had previously assumed a range of €50-70m.