Plus   Neg

Kloeckner Q3 Loss Narrows, Adj. EBITDA Up; Sees Sequentially Lower Q4 Sales; Backs FY20 View

Kloeckner & Co SE (KCO), a producer of steel and metal products, reported Tuesday that its third-quarter net loss was 5 million euros, compared to loss of 23 million euros in the prior-year period. Loss per share was 0.05 euro, compared to loss of 0.23 euro a year ago.

Operating income or EBITDA before material special effects was 40 million euros, higher than prior year's 26 million euros.

The company said the positive developments were largely driven by the digitalization and restructuring measures accelerated by the Surtsey transformation program, alongside favorable price effects.

Share of Group sales generated via digital channels further increased to 42 percent from last year's 30 percent, already exceeding the full-year target

CEO said, "We successfully navigated the first wave of the pandemic and we are well prepared for the second thanks to our digital transformation and the Surtsey project."

Looking ahead, the company said the development of shipments in the final months of 2020 remains uncertain due to the increase in the rate of COVID-19 transmission.

The company expects shipments and sales in the fourth quarter of 2020 to be lower than in the prior quarter.

However, for fiscal 2020, the company continues to anticipate EBITDA before material special effects of 75 million euros to 95 million euros.

The company also expects to see a significantly positive cash flow from operating activities.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT