Distributors/Service Centers

Klöckner Records Narrower Loss in Q3, Lauds N. American Buys
Written by Ethan Bernard
November 2, 2023
Klöckner & Co. posted a narrower net loss in the third quarter as the Duisburg, Germany-based service center group touted the expansion of its North American footprint.
The company’s net loss attributable to its shareholders narrowed to €12 million (US$12.8 million) in Q3 ended Sept. 30 vs. a loss of €22 million a year earlier, on sales that declined 19% to €1.93 billion (US$2.05 billion).
“Klöckner & Co. has delivered a solid performance despite the continued challenging overall economic environment,” Guido Kerkhoff, CEO of Klöckner, said in a statement on Oct. 31.
The company has a large presence in North America through its Kloeckner Metals Corp. subsidiary based in Roswell, Ga.
Kerkhoff noted the recent successful acquisitions of Mexican service center group National Material of Mexico (NMM) in early August, and Sol Components at the beginning of October, “a US market leader in end-to-end structural solutions for the solar industry.”
Kerkhoff said the Sol Components buy paves the way for Klöckner “to play a key role in the transition to renewable energy sources in North America.”
Additionally, he said the two acquisitions show the company is “steadily expanding our business in North America.”
Looking ahead to Q4, Klöckner expects a dip in shipments and sales compared to the previous quarter.
For the first nine months of 2023 the company swung to a loss of €9 million (US$9.6 million) attributable to shareholders from a net profit of €295 million(US$313.8 million) a year earlier on sales that slid 19% to €5.97 billion (US$6.34 billion).
The company attributed the lower sales as an “outcome of the continued challenging macroeconomic environment and lower steel prices.”
Ethan Bernard
Read more from Ethan BernardLatest in Distributors/Service Centers
Reliance profits dip amid trade policy headwinds
Reliance Inc. reported lower profits in the third quarter amid trade woes and abundant inventory in the market.
Olympic Steel taps Norred for GM role in Georgia
Olympic Steel Inc. has appointed Larry N. Norred, Jr. to the role of general manager for its Buford (fabrication) and Winder (metal processing) operations in Georgia.
Nova Steel acquires Sheffield Steel Products
Canada's Nova Steel has fully acquired all of the assets of Ohio's Sheffield Steel Products.
AZZ feels double-edged sword of tariffs with coating wins, Precoat headwinds
AZZ Inc. delivered steady results in its fiscal second quarter. While infrastructure-heavy work buoyed its Metal Coatings segment, its Precoat Metals business navigated softer building markets and tariff-driven uncertainty.
Jack Biegalski joins Esmark Steel Group as CEO
Jack Biegalski, former president and CEO of American Heavy Plates, has been named the new CEO of the Esmark Steel Group.
