Klöckner makes sound start to 2018

Germany’s Klöckner & Co has reported price-driven sales growth of 1.6% to €1.6 billion ($1.9 billion) in the first quarter of 2018, Kallanish learns from the steel distribution group.

In a positive overall market environment, the group expects significantly higher Ebitda than in Q1 2018 of €65-75 million for Q2 2018. Due to the increase in steel demand and internal optimisation measures, operating income for the full year is now expected to be slightly above its prior-year level, it says.

Klöckner notes that it has continued to make good progress with its so-called digital transformation. It further increased the proportion of sales generated through digital channels to 19% at the end of the quarter. The open industrial platform XOM Metals also went live. Initial transactions have already been successfully completed on the platform, the distributor says.

Ebitda, at €56m, was slightly above the guidance range of €45-55m but below the €77m recorded in Q1 2017. The decrease relative to the prior-year quarter is mainly due to less pronounced price effects and a weaker US dollar. At €21m, net income was once again well into positive figures, but down on €36m posted in Q1 2017.