Market Segment

Klöckner Doubles Q1 Profit on Higher Prices, Predicts Strong Q2
Written by Michael Cowden
May 4, 2022
Klöckner & Co. SE reported first quarter profits that were double those a year ago thanks largely to higher prices.
The Duisburg, Germany-based service center, which has significant operations in the US, expects the good times to roll into the second quarter as well.
 All told, Klöckner recorded net income of €172 million ($181.3 million) in the first quarter of 2022, up from €86 million ($90.7 million) in the first quarter of 2021 on sales that increased roughly 60% to €2.4 billion ($2.53 billion) over the same period.
All told, Klöckner recorded net income of €172 million ($181.3 million) in the first quarter of 2022, up from €86 million ($90.7 million) in the first quarter of 2021 on sales that increased roughly 60% to €2.4 billion ($2.53 billion) over the same period.
“We once again generated strong earnings in the first quarter of the year,” Klöckner CEO Guido Kerkhoff said in a statement released along with earnings figures on Wednesday, May 4.
Klöckner remains optimistic about business conditions in the second quarter despite “the challenging economic environment.”
Germany is more exposed to supply chain disruptions stemming from the war in Ukraine than the US, notably when it comes to reliance on Russian oil and gas.
Klöckner expects “stable to slightly increasing shipments” in the second quarter of 2022 compared to the first quarter. The company also forecast a “considerable” increase in sales quarter-over-quarter on higher steel prices, “disciplined” inventory management, and a margin-over-volume strategy.
Also of note, Klöckner said Khaled Bagban took over management of all the company’s IT and digital activities on May 1, 2022. Bagban serves as Klöckner’s chief digital and information officer as well as CEO of kloeckner.i – positions that will make him responsible for the company’s digital transformation.
Founded in 2014, kloeckner.i is in intended to be a “digital one-stop-shop” for steel and other materials, according to the company’s website.
By Michael Cowden, Michael@SteelMarketUpdate.com
 
			    			
			    		Michael Cowden
Read more from Michael CowdenLatest in Market Segment
 
		                                Gerdau’s N. American earnings rise in Q3 due to fall in imports
Gerdau’s North American profits rose in the third quarter, boosted by a decline in imports due to Section 232 steel tariffs.
 
		                                Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
 
		                                SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
 
		                                Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.
 
		                                Cliffs, POSCO announce MoU for ‘transformative’ partnership
Cleveland-Cliffs on Thursday said it had signed a memorandum of understanding (MoU) with POSCO to forge a strategic partnership, one Cliffs bills as "transformative."
