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Klöckner & Co reports solid start to the year

Klöckner & Co got off to a solid start in 2024. Total shipments increased slightly by 5% in the first quarter of 2024 in year-on-year comparison and amounted to 1.1 million metric tons. Relative to the preceding quarter, shipments showed a considerable, largely seasonal increase by 11%.

von | 16.05.24

Klöckner & Co got off to a solid start in 2024. Total shipments increased slightly by 5% in the first quarter of 2024 in year-on-year comparison and amounted to 1.1 million metric tons. Image: aymane jdidi / Pixabay
© Aymane Jdidi / Pixabay
Klöckner & Co announces figures of Q1/2024

May 2024 | Klöckner & Co got off to a solid start in 2024. Total shipments increased slightly by 5% in the first quarter of 2024 in year-on-year comparison and amounted to 1.1 million metric tons (Q1 2023: 1.1 million metric tons). Relative to the preceding quarter, shipments showed a considerable, largely seasonal increase by 11% (Q4 2023: 1.0 million metric tons).

In a persistently challenging macroeconomic environment, Klöckner & Co generated sales of €1.7 billion in the first quarter (Q1 2023: €1.8 billion), which is attributable to the price level being lower.

EBITDA of €42 Million Shows Strong Quarterly Growth

At €42 million, the operating income (EBITDA) before material special effects in the first quarter of 2024 was considerably higher than the previous quarter’s figure of €17 million. However, the result was lower than in the prior-year quarter (Q1 2023: €65 million).

In March 2024, the Company successfully completed the sale of parts of its European distribution business. The consolidated income from discontinued operations amounted to €–24 million, mainly due to negative deconsolidation effects from the aforementioned sale. The consolidated income from continuing operations amounted to €–8 million in the first quarter (Q1 2023: €24 million).

Consolidated Income Drops to €–32 Million

Overall, the consolidated income including discontinued operations amounted to €–32 million. Accordingly, the earnings per share 2 from continuing operations dropped to €–0.08 (Q1 2023: €0.23) and earnings per share including discontinued operations amounted to €–0.33 (Q1 2023: €–0.08).

After a positive cash flow from operating activities of €47 million in the same quarter of the previous year, this year cash flow from operating activities amounted to €–44 million in the first quarter. After payments for capital expenditures of €23 million, free cash flow amounted to €–67 million in the first three months of the financial year compared to a positive free cash flow of €40 million in the first quarter of 2023.

Klöckner & Co Balance 1/24

Klöckner & Co Key Figures Q1 / 2024

 

Equity Remains Strong with Improved Equity Ratio

At €1,727 million, the Company’s equity at the end of the quarter was only slightly below the figure at the end of 2023 (December 31, 2023: €1,755 million). Conversely, the equity ratio improved considerably to 47.6% (December 31, 2023: 45.4%).

Guido Kerkhoff, CEO of Klöckner & Co SE: “We achieved a solid result at the beginning of the year and reached an important milestone when we completed the sale of parts of our European distribution business. We can now focus our resources on the profitable high-growth business operations in Europe and North America and continue to expand our position in these key markets.”

Focus on High-Growth Business and Value-Added Products

Now that Klöckner & Co completed the sale of parts of the European distribution business in France, the UK, the Netherlands, and Belgium in the first quarter of 2024, the Company will focus on higher value-added business and products and services along its customers’ value chain. These products and services promise higher profitability and more stable demand in the future. The completed sale reduces the Company’s dependence on volatile, low-margin commodity markets even more. In 2023, the higher-value business already accounted for more than half of the operating income.

The Company also continued to scale up the digitalization and automation of its value chains. The number of digital quotes for the Group’s continuing operations increased by more than 50% in the first quarter of 2024 compared to the same period of the previous year.

Outlook

For the second quarter of 2024, Klöckner & Co expects a considerable increase in shipments and sales compared to the preceding quarter. Furthermore, the Company is forecasting EBITDA before material special effects of €30 million to €70 million for this period. Additionally, Klöckner & Co expects a positive cash flow from operating activities in the first half of 2024.

About Klöckner & Co

Klöckner & Co SE is one of the largest producer-independent distributors of steel and metal products and one of the world’s leading steel service center companies. With its distribution and service network of around 120 sites, primarily in North America and the “DACH” region (Germany, Austria and Switzerland), Klöckner & Co supplies more than 60,000 customers. Currently, the Group has around 6,300 employees.

Klöckner & Co generated sales of some €7.0 billion in fiscal year 2023. With the expansion of its portfolio of CO2-reduced materials, services and logistics options under the Nexigen® umbrella brand, the Company is underscoring its role as a pioneer of a sustainable steel industry. The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX® index of Deutsche Börse.

 

(Source: Klöckner & Co/2024)

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