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Klöckner & Co Reports Lean Earnings in Q3 of 2019

Steel News - Published on Thu, 07 Nov 2019

Image Source: SG
As a result of low steel prices and weak demand, Klöckner & Co recorded a significant year-on-year decrease in operating income before material special effects to EUR 26 million in the third quarter of 2019 (Q3 2018: EUR 59 million). The Company generated a net loss of EUR 23 million, compared with net income of EUR 22 million in the prior-year period.

The sales share generated via digital channels further increased to 30% (Q3 2018: 22%). In addition, another major partner has been recruited in the shape of edding AG, the internationally leading specialists in color application and visual communication. The company has already begun selling products on the Klöckner marketplace.

Digital subsidiary kloeckner.i has launched an artificial intelligence project for Klöckner & Co customers to become digital customers without altering their procurement processes. They can send quotation requests or orders to Klöckner by email with PDF attachments, by fax or phone as before and receive an offer or order confirmation in real time. The fully automated processing will not only significantly reduce manual effort, it will also considerably accelerate the entire ordering process from quotation request to offer preparation and order placement.

The product range on the independent industry platform XOM Materials has also been further expanded to over 10,400 different products. No fewer than 30 of the 43 distributors that have been signed in Europe and North America are already linked up with the platform.

Klöckner & Co anticipates that prices and quantities will decrease in the fourth quarter, both in Europe and in the USA. Taking these trends into account, the Company expects EBITDA for the full year 2019 of between EUR 120 million and EUR 130 million before material one-off effects (2018: EUR229 million).

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Posted By : Amom Remju on Thu, 07 Nov 2019
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