Duisburg Germany headquartered Klöckner & Co SE has achieved a positive operating income, EBITDA, before material special effects of EUR 16 million in the third quarter of 2022 despite the exceptionally negative macroeconomic environment, the significant correction of steel prices and weak demand. Klöckner said “Despite the significantly improved normalized margin level, this figure was below the previous forecast range of EUR 50-100 million due to an unforeseen inventory write-down at the end of the quarter as a result of the exceptionally high steel price declines and an actively enforced inventory reduction. The company was able to generate strong and significantly positive cash flow from operating activities of around EUR 150 million with a significantly reduced inventory level.”Klöckner added “Despite the slowdown in earnings momentum in the third and fourth quarters of 2022 due to the significant steel price correction, Klöckner & Co continues to expect one of the best full-year results since its IPO in 2006. Contrary to the previous forecast of more than EUR 500 million, however, EBITDA before material special effects is now expected to be around EUR 400 million due to the active reduction in inventories against the background of the macroeconomic environment and the inventory write-downs. Furthermore, Klöckner & Co forecasts an exceptionally positive cash flow from operating activities for the full year 2022.”
Duisburg Germany headquartered Klöckner & Co SE has achieved a positive operating income, EBITDA, before material special effects of EUR 16 million in the third quarter of 2022 despite the exceptionally negative macroeconomic environment, the significant correction of steel prices and weak demand. Klöckner said “Despite the significantly improved normalized margin level, this figure was below the previous forecast range of EUR 50-100 million due to an unforeseen inventory write-down at the end of the quarter as a result of the exceptionally high steel price declines and an actively enforced inventory reduction. The company was able to generate strong and significantly positive cash flow from operating activities of around EUR 150 million with a significantly reduced inventory level.”Klöckner added “Despite the slowdown in earnings momentum in the third and fourth quarters of 2022 due to the significant steel price correction, Klöckner & Co continues to expect one of the best full-year results since its IPO in 2006. Contrary to the previous forecast of more than EUR 500 million, however, EBITDA before material special effects is now expected to be around EUR 400 million due to the active reduction in inventories against the background of the macroeconomic environment and the inventory write-downs. Furthermore, Klöckner & Co forecasts an exceptionally positive cash flow from operating activities for the full year 2022.”
