Klöckner revises profit forecast further down

Klöckner & Co sees its operating income for the second quarter of 2019 at the lower end of the previously-published guidance range, it says in an ad-hoc announcement, citing general economic development.

Based on preliminary figures, Ebitda for Q2 is now expected to be €51 million ($57m) before material special effects, Kallanish notes. Against the background of a further weakening outlook for economic growth, the German-based steel distributor has lowered its previous guidance and is expecting an Ebitda of €140-160 million for the full year before material special effects.

In late April, it had given a forecast of €180-220m for the full year, taking into account lower sales prices (see Kallanish passim). The new adjustment is mainly driven by the negative impact on demand, particularly in the European automotive and machinery sector, as well as unexpected negative price effects in the US.

Klöckner & Co plans to publish its full Q2 results on 31 July.