Klöckner & Co says it was able to benefit disproportionately from the positive market developments of recent weeks, and has therefore adjusted the earnings figure it forecasted for the full year.
It now expects an Ebitda before material special effects of €105-115 million ($128-140m) for 2020, contrary to previous expectations of €75-95m, and still a significantly positive cash flow from operating activities.
“In the course of the fourth quarter, the recovery in steel demand continued more strongly than previously expected,” the German-based steel distributor writes in an ad-hoc announcement sent to Kallanish. At the same time, improved price levels have already had a positive impact on the group’s operating income, it continues.
Looking ahead, Klöckner believes the market recovery will continue at the beginning of the new year. The group states that it has benefited from “…rapidly increasing digitalisation and restructuring effects” from its “Surtsey” project. It expects this programme to considerably boost income in the first quarter of 2021, compared to the same quarter of the previous year.