Steel Mills

Kloeckner Metals Corp Earnings
Written by Sandy Williams
March 5, 2015
Kloeckner Metals Corp, the Americas segment of Klockner & Co., posted EBITDA of €19 million ($21 million) for fourth quarter 2014, as compared to €2 million ($2.2 million) year over year. Sales for fourth quarter were €604 million, down from third quarter €634 million ($665 million) but up 16.3 percent y/y. Shipments in fourth quarter slipped to 662,000 tonnes (729,717 tons) from 733,000 tonnes (807,980 tons) in each of the previous two quarters. Shipments were 1.4 percent higher on a year over year basis in Q4. The Americas segment includes the U.S., Mexico and Brazil.
Sales for 2014 were up 1.9 percent to €2.402 ($2.65 billion) from €2.359 billion ($2.60 billion) in 2013, due to favorable prices in the first half of 2014. Shipments for the year decreased 1.0 percent to 2,804,000 tonnes (3,090,828 tons). Gross margins increased 0.7 percent to 17.5 percent in 2014. EBITDA for full year 2014 was €100 million ($110 million) up from €60 million ($66 million) in 2013.
“By contrast [to Europe], shipments in the Americas segment decreased by -1.0% year-on-year. This decrease mainly related to our activities in Brazil. Despite a long and difficult winter, the consolidation of locations toward the end of 2013 and margin-based pricing in sales, shipments in the USA were more or less on a par with the prior year,” wrote Klockener in the earnings release.
Klockner noted sales increased by 1.9 percent in the USA despite lower shipments in FY 2014. For 2015, the company expects stronger steel demand in the U.S. driven by automotive and construction.
(€1.00 = $1.10)

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Steel Summit: Burritt says USS and Nippon are fast-tracking modern steelmaking
U.S. Steel President and CEO David Burritt told audiences at SMU's Steel Summit 2025 that the iconic American steelmaker’s partnership with Nippon Steel is fast-tracking smarter steel production.

Nucor moves to stop HRC price slide with $10/ton hike
Nucor is attempting to halt the decline in hot-rolled coil prices with the announcement of a $10-per-short-ton increase in its weekly consumer spot price on Monday.

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.