Klöckner & Co SE approves another package of measures and suspends dividend for 2008
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companies/package of measures
Duisburg (euro adhoc) - Duisburg, 03 March 2009 - Faced with a continuing strong drop in demand, the Management Board at Klöckner & Co has approved another package of measures to lower costs and inventories. In a program that builds on the initial measures taken last September, personnel-related actions will be increased again, operating expenses will be reduced in all areas, and inventories will be decreased further. After cutting the jobs of 800 employees as part of the initial package of measures, the workforce will be reduced by an additional 700 employees in a decision that will significantly lower fixed costs. The Management Board assumes that savings of about EUR100 million can be achieved during the ongoing financial year as a result of the packages of measures working in combination with the performance program STAR. In spite of these far-reaching measures, earnings are expected to fall significantly below the previous year´s level.
As a result of these developments, the Management Board has decided to propose to the Annual General Meeting that the payment of a dividend for the financial year of 2008 will be suspended. "Against the backdrop of the difficult economic situation and the uncertain outlook, we are forced to use all available options to cut costs and further reduce outstanding debt. Unfortunately, these steps include reducing personnel and suspending the dividend," said Dr. Thomas Ludwig, Chairman of the Management Board at Klöckner & Co SE.
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 185,000 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: 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
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Börse München / free trade
Original-Content von: Klöckner & Co SE, übermittelt durch news aktuell