01.03.2017
Klöckner & Co SE DE000KC01000
DGAP-News: Klöckner & Co SE returns to profit in fiscal year 2016
DGAP-News: Klöckner & Co SE / Key word(s): Final Results
Klöckner & Co SE returns to profit in fiscal year 2016
01.03.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
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- Operating income (EBITDA) at five-year high of EUR196 million
- Net income once again positive at EUR38 million after loss in previous
year
- Resumption of dividends of EUR0.20 per share planned
- Significant progress made in digital transformation of the Company
- Further growth in operating income forecast for current year
Duisburg, Germany, March 1, 2017 - Klöckner & Co significantly increased
its EBITDA and net income in 2016 to EUR196 million (2015: EUR86 million
before restructuring expenses) and EUR38 million (2015: loss of EUR349
million), respectively. By contrast, sales declined by 11.1%, from EUR6,444
million to EUR5,730 million. Steel prices were lower on average but rose
over the course of the year. This had a negative effect on sales but a
positive effect on earnings. Sales were also adversely impacted by
restructuring-related declines in shipments, while this benefited earnings.
Operating cash flow declined but was once again significantly positive at
EUR73 million (2015: EUR276 million). Net financial debt rose from EUR385
million to EUR444 million, mainly due to exchange rate effects, but
remained at a low level. At 40%, the equity ratio was again very solid.
"In view of our return to profit and the improved operating environment,
the Management Board and Supervisory Board will be proposing to the Annual
General Meeting a dividend distribution of EUR0.20 per share," said Gisbert
Rühl, CEO of Klöckner & Co SE.
Digital transformation driven forward
Significant progress was made in the digitalization of the supply and value
chain under the "Klöckner & Co 2020" strategy. The digital solutions
developed by internal start-up kloeckner.i were rolled out for a wider
group of customers. The "Kloeckner Connect" service platform also went
live. This gives customers central access to Klöckner & Co's comprehensive
range of digital tools. As a result, the proportion of sales generated
through digital channels rose successively from 9% in the first quarter to
12% in the final quarter of 2016. The plan for the current year is to
create an industry platform by gradually integrating competitors into
Klöckner & Co's online offering.
Expansion of higher-margin business ahead of schedule
The business in higher value-added products and services was further
expanded, accounting for 46% of sales compared with 39% in the prior year.
This means that the target of over 50% originally announced for 2020 should
be reached as early as 2018. Growth drivers will include the new service
center to process aluminum flat products that Klöckner & Co is building in
Bönen, North Rhine-Westphalia, through its subsidiary Becker Stahl-Service
(BSS). The EUR35 million investment - the largest in BSS's corporate
history - is to be completed next year, although the first production line
is scheduled to start operation before the end of this year.
"One Europe" program launched
The new organizational structure under the "One Europe" optimization
program was rolled out at the beginning of 2017. This program will bring
the activities of the European country organizations in Belgium, Germany,
France, the United Kingdom, the Netherlands and Austria even closer
together. It aims to cut costs, generate synergies - notably in logistics
and procurement - and enable even faster implementation of the "Klöckner &
Co 2020" strategy. Plans are for "One Europe" to deliver an incremental
contribution to EBITDA totaling some EUR30 million by 2019, EUR10 million
of which is to be contributed in the current year.
Further earnings growth expected
For the current fiscal year, Klöckner & Co expects a slight rise in real
steel demand in both primary sales markets, Europe and the USA.
Additionally driven by an anticipated increase in the price level, sales in
the Klöckner & Co Group are projected to grow slightly more strongly than
demand. Operating income (EBITDA) is also forecast to increase slightly,
buoyed by further optimization measures. Higher steel prices at the
beginning of the year should lead to very substantial growth in the first
quarter of 2017, with EBITDA between EUR65 million and EUR75 million (Q1
2016: EUR16 million).
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 190 locations in 13 countries, the Group supplies more than 130,000
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 EUR5.7 billion in
fiscal 2016.
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.
Klöckner & Co SE media contact:
Christian Pokropp - Press Spokesperson
Head of Investor Relations & Corporate Communications
Phone: +49 203 3072050
Fax: +49 203 3075025
E-mail: [email protected]
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01.03.2017 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.
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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
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