Klöckner & Co: Sales and earnings for fiscal year 2008 rise markedly above previous year´s levels - outlook unclear
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balance/previous year's figures
Duisburg (euro adhoc) - Duisburg, January 30, 2009 - Klöckner & Co increased its sales by about 6% to EUR6.7 billion during fiscal year 2008, preliminary results show. This growth in sales was fueled in large part by acquisitions and price increases during the first nine months of the year.
EBITDA (earnings before interest, taxes, depreciation and amortization) climbed by about 60%, rising from EUR371 million in 2007 to about EUR595 million. This figure includes non-recurring items resulting from a book gain of about EUR260 million generated by the sale of business units and assets as well as a charge totaling EUR79 million arising from a reserve for the anti-trust fine imposed on the French subsidiary of Klöckner & Co SE, KDI SAS.
Excluding non-recurring items, operating EBITDA amounted to about EUR415 million in 2008, climbing around 25% over 2007.
The amount of tonnage sold during the year fell by 8% to about 6 million tons. The figure reflects the impact of the sale of the Canadian company Namasco Ltd., a loss that could not be offset by the newly acquired businesses.
Net cash indebtedness, which peaked at EUR1,072 million towards the end of the second quarter of 2008, was cut significantly to EUR570 million, or nearly in half. This decrease was achieved through the sale of business units and the capital release from a reduction in net working capital, in particular from destocking.
While Klöckner & Co SE generated another strong overall result in fiscal year 2008, this performance was only the result of positive developments in the first nine months of the year. Business developments in the fourth quarter reflected the impact of negative economic developments around the world. During the fourth quarter of 2008, plunging prices and sales volumes produced a 7% decrease in sales compared with the fourth quarter of 2007. The operational loss of around EUR65 million recorded in the fourth quarter of 2008 resulted primarily from price-related inventory write-downs of about EUR60 million.
In response to growing problems in the real economy and financial markets, Klöckner & Co initiated an extensive cost-cutting program in September 2008. Nonetheless, negative economic effects on sales and margins will be reflected in earnings. At the same time, prevailing economic uncertainties make it impossible to issue any guidance about the direction of fiscal year 2009 at this point in time.
Klöckner & Co will release detailed information and its final results for fiscal year 2008 on March 31, 2009. The information will be available on the Internet beginning at 8 a.m. (CEST) at www.kloeckner.de.
About Klöckner & Co: Klöckner & Co is the largest producer-independent distributor of steel and metal products in the European and North American markets combined. The core business of the Klöckner & Co Group is the storage and distribution of steel and non-ferrous metals. About 210,000 active customers are supplied through more than 260 distribution locations in 15 countries in Europe and North America. During the financial year 2007, the Company achieved sales of approximately EUR6.3 billion with more than 10,000 employees. The shares of Klöckner & Co SE are admitted to trading on the official market segment (Amtlicher Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with simultaneous admission to the sub-segment (Prime Standard) to the official market with further post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576. Klöckner & Co shares are listed in the MDax® Index of Deutsche Börse.
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Further inquiry note:
Peter Ringsleben - Corporate Communications
Phone: +49-203-307-2800
E-mail: peter.ringsleben@kloeckner.de
Claudia Uhlendorf - Corporate Communications
Phone: +49-203-307-2289
E-mail: claudia.uhlendorf@kloeckner.de
Dr. Thilo Theilen - Investor Relations
Phone: +49-203-307-2050
E-Mail: thilo.theilen@kloeckner.de
Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: MDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Original-Content von: Klöckner & Co SE, übermittelt durch news aktuell