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Klockner revises expectations for global economic growth
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Saturday, 10 Sep 2011

The management board of Klöckner & Co SE has responded to the revised expectations for global economic growth with a profitability action plan.

It said “Alongside measures to cut administration costs and overheads, the initiatives notably center on structural changes in the country organizations. This includes discontinuing business segments where target operating margins no longer appear likely to be attained in the medium term due to the changed operating environment.”

Klöckner & Co expects that the action plan will deliver an annual boost to operating income in the mid double digit millions of euros. The one off expenditure required to achieve this lies in the low double digit millions of euros and will be financed in full out of disposal proceeds. Despite the discontinuation of business segments with sales in the mid triple digit millions of euros, the Management Board of Klöckner & Co is continuing its Klöckner & Co 2020 growth strategy.

Mr Gisbert Rühl chairman of the management board of Klöckner & Co SE said that "Even though the current volume development is still in line with expectations, by responding early to the global economic growth slowdown we want to be sure that we regain our EBITDA margin target of 6% as soon as possible."

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