Kloeckner & Co SE said that 2009 earnings will drop significantly after demand tumbled and there is no indication of a recovery. It added that "No signs of improving can be seen at the moment. A bottom for the prices of steel and metal products has not been reached, even though steel production has been dramatically cut back."

Kloeckner said that net income more than doubled to EUR 398.1 million in 2008. EBITDA excluding one time items were EUR 420 million, missing the EUR 500 million target and sales gained 7.7% to EUR 6.75 billion.

It may be noted that Kloeckner slashed output by 33% since January 2009 as their biggest clients reduce consumption. Prices for hot rolled steel coil, a benchmark product used in cars and construction, have dropped 47% in the past year.

Kloeckner is also seeking cost savings by cutting jobs, working hours and inventories. It reduced debt to less than EUR 360 million at December 31st 2008 from EUR 571 million a year earlier.

(Sourced from www.bloomberg.net)