Klöckner & Co Reports Mixed Q1 2024 Financial Results Amidst Challenges

Klöckner & Co saw a mixed first quarter of 2024, reporting slightly increased shipments but lower sales and earnings compared to the same period last year. Shipments rose by 5% year-over-year to 1.1 million metric tons. Despite these higher volumes, sales fell to €1.7 billion, down from €1.8 billion in Q1 2023, due primarily to lower price levels.

The company's operating income (EBITDA) before material special effects stood at €42 million, a considerable improvement over Q4 2023's €17 million, yet a decline from €65 million in the first quarter of the previous year. These figures mirror the persistently challenging macroeconomic environment that continues to impact the industry.

Klöckner & Co recently completed the sale of parts of its European distribution business, significantly changing its business structure. This divestment aligns with its strategic shift towards higher-margin operations. In accordance with its strategic adaptations, the company predicts an optimistic EBITDA of €30 million to €70 million for Q2 2024 and an anticipated rebound in shipments and sales.