Kloeckner & Co is expecting growth in revenue in the second quarter, due to increasing steel prices, especially in the USA.
In Q1, the company sold 1.17 million tonnes of steel, up 2.7% on the corresponding quarter of 2024. The increase was driven by Kloeckner Metals America, while tonnages in Europe still declined slightly year-on-year, chief executive Guido Kerkhoff said on a conference call on Wednesday monitored by Kallanish.
Despite the overall increase in shipments, lower steel prices saw revenue fall by 4.1% to €1.67 billion ($1.9 billion), while Ebitda stayed flat at €42 million.
Kerkhoff noted that the North American unit replenished its inventories towards the end of last year at low prices, meaning it will be able to benefit from the considerable recent price increases in the region.
He underlined the company’s strategic course of becoming a processor, rather than a mere stockholder. In comparison with the total figures, revenue in the processing operations, including service centres, went up 8%. “There is demand for partners that can take over part of the value-added chain,” he said, adding that the company is seeking more such partnerships with customers as well as suppliers.
Kerkhoff highlighted that the company’s North American business, which now accounts for 60% of group revenue, is particularly strong on value-added services.
Christian Koehl Germany
