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Digital pricing tools amplify positive earnings impact of rising steel prices
Proportion of Group sales generated via digital channels hits 10% mark
New program “One Europe” for the European steel distribution business developed to further boost profitability
Positive earnings trend expected to continue with an EBITDA of €65 to €75 million in third quarter
Full year targets of an significantly higher EBITDA and a positive net income confirmed
Duisburg, Germany, August 4, 2016 – Klöckner & Co generated operating income (EBITDA) of €72 million in the second quarter of 2016, significantly improving on the prior-year operating loss of €17 million and hence also returning to positive figures on the bottom line with net income of €33 million (Q2 2015: net loss of €55 million). Operating income is set to stay above prior-year performance going forward, with third-quarter operating income expected to be between €65 and €75 million. The Group has confirmed its full-year targets of significantly higher EBITDA and a return to positive net income.
Gisbert Rühl, CEO of Klöckner & Co SE: “Increasing use of digital pricing tools allowed us to benefit more strongly than in the past from rising market prices for steel and metal products and, as a result, to deliver the best quarterly results in more than five years.”
Klöckner & Co also made further progress in the ongoing implementation of its digitalization strategy. In total, digital channels already accounted for some 10% of Group sales.
Over the last several years, Klöckner & Co has restructured its European distribution business at country level, downsized capacity and pooled operations. Now, under the new “One Europe” program, the activities of the country organizations in Austria, Belgium, France, Germany, the Netherlands, Spain and the United Kingdom are to be brought even closer together. The new structure not only aims to cut costs and facilitate synergies, but also to ensure faster, more efficient implementation of the digital transformation. “One Europe” is set to deliver an incremental EBITDA contribution of in total some €30 million in the next three years – thereof already €10 million in 2017.