For fiscal 2011, despite softening demand, Klöckner & Co continues to anticipate YoY growth of more than 25% in sales volumes and more than 35% in sales, largely thanks to the contributions made by the acquisitions.

Given the weak demand trend and the sustained price pressure, the company projects that fourth quarter EBITDA will be down on the third quarter. Restructuring costs in the low double digit millions of euros will have an additional impact on income.

For 2012, Klöckner & Co currently expects rising demand for steel in North and South America and at best stable demand for steel in Europe, with risks due to the sovereign debt crisis in the euro zone remaining high. In light of this, the 6% long term EBITDA margin target will not yet be attained in the next year. The initial restructuring measures will, however, contribute to achieving this target as soon as possible thereafter.

Mr Gisbert Ruehl chairman of the management board of Kloeckner & Co SE said that "We confirm our outlook of over 25% sales volume growth and more than 35% sales growth this year. It will not be possible to stop the earnings trend, however, and we expect a further decrease in EBITDA in the fourth quarter. We are nonetheless well equipped to carry ourselves through a potentially sustained lean period and in the process to carve out options for further growth."