DGAP-News: Klöckner & Co. SE / Key word(s): 9-month figures/Quarterly / Interim Statement Klöckner & Co SE substantially boosts earnings in first nine months of 2016 03.11.2016 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Operating income (EBITDA) of EUR159 million more than double that for prior-year period - Net income once again strongly positive at EUR50 million, compared with EUR85 million loss in prior-year period - Sales via digital channels steadily increased to 11% in third quarter - Full-year targets confirmed; EBITDA guidance narrowed to between EUR180 million and EUR190 million Duisburg, Germany, November 3, 2016 - Despite a restructuring and price- related fall in sales compared to last year, Klöckner & Co more than doubled its operating income (EBITDA) to EUR159 million (9M 2015: EUR76 million before restructuring expenses). This was mainly driven by a surge in gross profit from EUR940 million to EUR996 million. The gross profit margin showed a corresponding increase from 18.9% to 23.0%. The EBITDA margin improved from 1.5% to 3.7%. Net income was well back into positive figures at EUR50 million (9M 2015: EUR85 million net loss). The year's positive trend is expected to continue in the final quarter, with an anticipated operating income once again above the prior-year figure. For the full year, EBITDA is expected to be between EUR180 million and EUR190 million with a positive net income. Substantial progress has been made with transforming the business model under the "Klöckner & Co 2020" strategy. Further stepping up the use of digital pricing tools, for instance, was a key factor behind the tangible improvement in margins. The proportion of sales generated through digital channels steadily increased to 11% in the third quarter. Klöckner & Co is also pushing ahead with expanding its business with higher value-added products and services. Through subsidiary Becker Stahl-Service, the Group is building a service center to process aluminum flat products at its Bönen location in North Rhine-Westphalia, Germany. The first of two machining lines - at EUR35 million the highest investment in BSS's corporate history - is to be completed as early as next year. The facility is expected to reach full capacity in 2018 with the ability to process a total of 80,000 tons of aluminum a year. Under the new "One Europe" optimization program announced this summer, the activities of the country organizations in Austria, Belgium, Germany, France, the Netherlands, Spain and the United Kingdom are to be integrated further. The new organizational structure will be implemented at the beginning of 2017. "One Europe" is targeting to deliver an incremental contribution to EBITDA totaling about EUR30 million by 2019, of which EUR10 million is to be achieved as early as next year. Gisbert Rühl, CEO of Klöckner & Co SE: "After the market- and restructuring-driven impacts of the past few years, our improved operating lineup is now increasingly visible in the results. By systematically implementing our digitalization strategy and the extension of business envolving higher value-added products and services, we are working all out to ensure that the upward trend continues." About Klöckner & Co: Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service center companies worldwide. Based on its distribution and service network of around 200 locations in 14 countries, the Group supplies more than 140,000 customers. In addition to companies in the construction industry as well as machinery and mechanical engineering, Klöckner & Co serves customers in the automotive and chemical industry, in shipbuilding and in fields of household appliances, consumer goods and energy. Currently Klöckner & Co has around 9,100 employees. The Group had sales of around EUR6.4 billion in fiscal 2015. The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX(R)-Index of Deutsche Börse. ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576. Contact person Klöckner & Co SE: Christian Pokropp - Press Spokesperson Head of Investor Relations & Corporate Communications Phone: +49 203 3072050 Fax: +49 203 3075025 Email: [email protected] --------------------------------------------------------------------------- 03.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Klöckner & Co. SE Am Silberpalais 1 47057 Duisburg Germany Phone: +49 (0)203 / 307-0 Fax: +49 (0)203 / 307-5000 E-mail: [email protected] Internet: www.kloeckner.com ISIN: DE000KC01000 WKN: KC0100 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 516849 03.11.2016