Steel Products
Kloeckner Results Disappoint
Written by Sandy Williams
August 9, 2013
Kloeckner & Co. SE reported disappointing results for the first half of 2013 but said its restructuring plan is working.
The company’s restructuring effort has resulted in the sale of 60 locations in Eastern Europe and a reduction of 1800 workers. Further reductions in France and the USA will bring the total sale or closure of facilities to 70 and a loss of 2000 employees.
Total turnover in the first half of 2013 was down by 10.3 percent y/y to 3.3 million tonnes due to weaker markets in the U.S. and Europe, restructuring costs and lower sales. Sales dropped 15 percent to €3.3 billion ($4.4 billion).
Turnover in the Americas segment in Q2 declined by 2.1 percent y/y to 749,000 tonnes but was up from 716,000 tonnes in Q1. U.S sales were €637 million ($852 million), up from €608 million ($813 million) in Q1 but down 12.3 percent y/y.
The second half of 2013 is expected to be stronger primarily due to recovery in the U.S. and the restructuring efforts of the company.
“Even if we cannot expect any tailwind from the European steel market, we anticipate that, given the timely, radical restructuring measures, we will regain profitability under our own power next year. Additional impetus can come from the generally expected recovery in the USA, our growth market, and from the currently improving price environment,” said CEO Gisbert Rühl.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.

HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.

Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]

Rig count dips again in both US and Canada
Oil and gas drilling activity waned in the US and Canada this past week. Ticking own for the second straight week in both regions.

Steel caucus pushes US trade officials to maintain strong S232 program
The bipartisan Congressional Steel Caucus is pushing for US officials to maintain a robust Section 232 program as they negotiate trade deals with America's trading partners.