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.”
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