December 04, 2008

Klöckner’s January to September sales up by 15.7% YoY

The Klöckner & Co Group announced that it boosted its sales in the January to September 2007 by 15.7% to EUR 4.8 billion and again generated an EBITDA of EUR 287.9 million. Even though the result was down by 11.5% YoY due to increased price pressure in the Q3, the medium term upward trend is becoming more firmly established.

The Klöckner & Co Group increased its sales volume by 4.7% YoY to 4.9 million metric tons to the end of September 2007 due to the acquisitions made and despite streamlining at various locations. Sales rose in the same period by 15.7% to EUR 4.8 billion.

Dr Thomas Ludwig CEO of Klöckner & Co AG said that "We expect our sales in full year 2007 to rise significantly and to generate a good result again. Even if the EBITDA will be down 10% year on year due to increased price pressure in the second half of the year, we will generate the second-best operating result that the company has seen in over 100 years. We are thus reaffirming the forecast that we adjusted in October."

Dr Ludwig explained that “The target of acquiring 10 to 12 profitable small and medium-sized multi metal distribution companies in 2007 was achieved ahead of schedule with the 12th acquisition in September 2007. In addition, the Group’s financing was further optimized by placing a syndicated holding facility and by issuing a convertible bond. The STAR performance program was successfully continued. “This means a large part of the measures planned for 2007 have already been implemented. We believe that the Company is still on a good and successful course and that it is well equipped for the future.”

Klöckner & Co is the largest independent producer and distributor of steel and metal products in the European and North American markets combined. The core business of the Klöckner & Co Group is the storage and distribution of steel and non-ferrous metals.