Steel Mills
Kloeckner Metals Improvements Boost H1 EBITDA
Written by Sandy Williams
August 9, 2014
Kloeckner Metals Corp. shipments fell by 3.8 percent year-on-year in the first half of 2014, due to the extended winter, consolidation of sites and the reduction of low-margin business. EBITDA improved by 27 percent from €41 million to €52 million ($55 million to $69.7 million), helped by operational improvements and higher-margins.
The company expects US steel demand to increase by 4-5 percent over 2014 due to a strong automotive industry and improving commercial construction.
Parent company Klöckner & Co. SE, headquartered in Germany, reported shipments were up 0.5 percent to 3.4 million tonnes (3.7 million net tons). Sales were down slightly by 2.1 percent to €3.3 billion ($4.4 million) due to a weaker US/Euro exchange rate and lower steel prices in Europe. Net income was €13 million ($17.4 million) compared to a loss of €20 million ($26.8 million) in the same period of 2013.
“After returning to profit in the first quarter, we sustained the upward trend in the second quarter too, despite conditions in Europe remaining difficult,” said Gisbert Rühl, CEO of Klöckner & Co SE. “This shows that the expansion of our activities in the USA and the very comprehensive restructuring measures are already proving increasingly effective.”
Klöckner’s US segment is Kloeckner Metals Corporation, headquartered in Roswell, Georgia. Kloeckner Metals consists of three business segments: Flat Rolled Group, Heavy Carbon Group and Special Products Group. The company also has three divisions: Temtco Steel Division, Kloeckner Metals Processing Division and California Steel & Tube Division.
Sandy Williams
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