DUISBURG (dpa-AFX) – Lower steel prices and value adjustments drove steel trader Klöckner & Co (KlöcknerCo (KlöCo)) into the red last year. Nevertheless, there should be a dividend for the shareholders. The management around CEO Guido Kerkhoff appeared more confident for the new year: Klöckner is assuming a recovery in demand, which should also be reflected in the figures. This was well received on the market: the share, which is listed in the small-cap SDAX segment, gained more than five percent in the morning.
The bottom line was a loss of 190 million euros in 2023, as the company announced on Wednesday in Duisburg. In the previous year there was a profit of 259 million euros. The depreciation was related to the recently completed sale of the four national companies France, Great Britain, the Netherlands and Belgium. Adjusted for this, the consolidated result was minus 0.3 million euros. Klöckner still wants to pay a dividend, at EUR 0.20 per share it should be half as high as last year. Klöckner justified the distribution with the clearly positive cash inflows. In addition, the very strong previous year’s results were only partially distributed.
By selling the four national companies, Klöckner wants to concentrate on its largest market, North America, as well as its activities in Germany, Austria and Switzerland. In the future, the company will focus more on the processing and metal processing business. According to Klöckner, this business area is characterized by long-term contracts and a high level of customer specialization. In addition, demand is more stable and profitability is higher.
Sales fell from 8.3 billion to almost 7 billion euros in 2023. Earnings before interest, taxes, depreciation and amortization (Ebitda), adjusted for special effects, fell from 355 million to 190 million euros and were therefore within the scope of Klöckner’s last forecast. The company had already lowered its outlook last year.
For the current year, the company expects general conditions to normalize and inflation dynamics to slow down. Demand in the key sales markets in Europe and North America should increase significantly and with it sales and sales. Klöckner also expects a significant increase in earnings.
The recovery should already be seen in the first quarter: the company is forecasting an adjusted operating result of between 30 and 70 million euros. This represents a significant improvement compared to the previous quarter, when 17 million euros were recorded./nas/men/mis
Selected leverage products on Klöckner
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Klöckner
The leverage must be between 2 and 20
Advertising