German distribution group Klöckner & Co posted its strongest earnings since its 2006 listing in the first half of 2022, thanks to a huge temporary rise in steel and metal prices. It expects even higher sales until the end of the year.
Ebitda before material special effects increased to €423 million ($431m) from €401m in H1 2021, Kallanish notes. Net income increased to €323m against €301m a year earlier.
Sales rose 48.8% on-year to €5 billion.
However, in the second quarter alone, Ebitda before material special effects decreased to €222m against €271m in Q2 2021. Net income also fell to €151m against €215m a year earlier.
The company ramped up sales in Q2 to €2.58 billion, from €1.85 billion in Q2 2021.
“Thanks to higher prices in the market, we have continued implementing our group strategy, laying the foundation for an even more successful Klöckner & Co in the future,” says the company’s chief executive, Guido Kerkhoff. “We have strengthened our partnership with Nucor in the US, added to our stainless steel product and service portfolio by relevant acquisitions through our subsidiary Becker Stahl-Service, and expanded our advisory capabilities for green products and services.”
“As this shows, even in economically challenging times, we continue to work systematically on our strategic priorities,” he adds.
Due to anticipated higher average steel prices, Klöckner expects significant sales growth in full-year 2022. After a significant intervening rise in the first half-year, prices have recently corrected. In light of this and of the challenging macroeconomic environment, the company forecasts Ebitda of €50-100m before material special effects in Q3.
A figure of more than €500m is expected for the full year, which would be the second-best result since the IPO in 2006, the firm claims.
After generating cash flow from operating activities of €262m in Q2 as a result of consistent net working capital management, Klöckner also expects a significantly positive figure for H2 and the full year.
Svetoslav Abrossimov Bulgaria