Exceptionally steep steel price declines and an actively enforced inventory reduction have left the third quarter results of Klöckner & Co far below expectations, Kallanish hears from the German-based distribution group.
The operating income (Ebitda) of €16 million ($15.5m) remained short of the previous forecast range of €50-100m due to an unforeseen inventory write-down at the end of the quarter, Klöckner states. The group has thus revised its full-year earnings forecast, although it still expects one of the best results in years, despite the slowdown in earnings momentum in Q3 and Q4.
Contrary to the previous forecast of more than €500m, Ebitda for the full year is now expected to be around €400m against the background of the macroeconomic environment and the inventory write-downs. The full figures for the third quarter will be announced on 3 November.
Christian Koehl Germany