Klöckner narrows Q1 loss, targets growth in North America and Europe

The company reported total shipments of 1.2 million metric tons (mt) in the first quarter, a 14% increase from the previous quarter, and up 3% from a year earlier.

Klockner attributed the bump to “the increased demand for steel and metal products in the Kloeckner Metals Americas segment as well as a market share increase in this segment.”

Klöckner also said it had signed an agreement to sell its Brazilian unit, Kloeckner Metals Brasil. The transaction was completed in April.

“The decision to sell was in line with the corporate strategy of focusing future growth on the higher value-added processing and metalworking business in the largest market in North America as well as on the lucrative European activities in the DACH region,” Klöckner said.

The DACH region includes Germany, Austria, and Switzerland.

Klockner Metals Americas

The Klockner Metals Americas segment logged external sales of €987 million (USD$1.1 billion), off 4% from a year earlier. The segment reported a rise of 6% in shipments to 757,000 mt in the same comparison.

The company said “demand for steel and metal products picked up strongly, particularly from the middle of the reporting period.” Klöckner attributed the decline in sales to lower averages prices vs. a year earlier.

Additionally, the company has completed its acquisition of Haley Tool & Stamping, near Nashville. Haley operates out of a 50,000-square-foot facility. It houses multiple stamping presses ranging from 50 to 440 tons, Klöckner said.

Through the acquisition, the company “has expanded its manufacturing capabilities with state-of-the-art stamping presses, allowing it to actively leverage operational synergies across all Klöckner locations in the region.”

Klöckner expects this move to “accelerate growth in the automotive, aerospace, and industrial manufacturing sectors.”

Note that Klöckner has a substantial North American presence through its Kloeckner Metals subsidiary, which is based in Roswell, Ga. It has more than 55 branches in North America.

Outlook

Due to higher steel prices, especially in the US, Klöckner expects a considerable sequential  jump in sales for the second quarter.

The company is forecasting EBITDA before material special effects of €60 million to €90 million for Q2’25. This marks an increase from both the previous quarter and the same quarter in the prior year.