Germany’s Klöckner & Co is becoming more cautious with its profit expectations this year. In an ad-hoc-release, it says it is lowering its previous guidance of an operating income (Ebitda) of €140-160 million ($154-176m) for the full year, to €120-130m.
The steel distribution group had adjusted its original guidance in the summer (see Kallanish 23 July). Its latest adjustment is now based on a preliminary Ebitda figure for the third quarter, which is expected to be €26m before material special effects. This is at the lower end of the previously-published guidance range of €25-35m.
“After the recovery of the steel prices in the USA in the third quarter, which was expected to continue in the fourth quarter, Klöckner is now anticipating weaker market conditions,” the company says. It notes that it is now expecting negative price development. The company has strong activities both in Europe and on the US market.
Klöckner & Co is to reveal full third quarter results on 30 October.