Klöckner & Co Gains 62.3% Sales Volumes In Americas Segment
For Klöckner & Co, the first half of this year showed strong combined results from the 1st and 2nd quarter. Below are the highlights:
• Sales volumes increased compared with first half of 2010 by24.1% to 3.3 million tons (Q2: 1.8 million tons compared with 1.4 million tons in Q2 2010)
• Sales up by 40.8% compared with the prior-year period to approximately €3.5 billion (Q2: €1.9 billion compared with €1.4 billion in Q2 2010)
• Net income at €50 million, compared with €49 million in prior-year period The first quarter really helped out as the second quarter saw decreased steel prices. However, the acquisition of Macsteel Service Centers USA helped the second quarter sales volumes and sales.
Compared with the first six months in 2010, Sales volumes this year’s period gained 62.3% in the Americas segment.
The acquisition of Macsteel Service Centers USA with 2010 sales of USD 1.3 billion helped double Klöckner & Co’s sales and number of locations in North America. It adds flat products to a product range previously focused on long products and heavy plate. Klöckner & Co is now the third largest steel and metal distributor in North America.
The 70% acquisition in the Frefer Group, Brazil helped Klöckner & Co’s enter the growing South American markets.
Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: “Our customers showed a certain reluctance to make purchases [in the second quarter] because they expected prices to continue downwards. This also put increasing pressure on margins. Although there is once more considerably greater uncertainty, we confirm our outlook of more than 25% growth in sales volumes and sales in 2011, provided that current developments on the global capital markets do not lead back into a recession.”
The third quarter is expected to see reduced demand with lower earnings, but the acquisitions are expected to help the company reach their targeted 25% growth in sales volumes and sales in 2011.
Source: Klöckner & Co