EANS-News: Klöckner & Co SE Klöckner & Co adopts profitability action plan,
expects boost to EBITDA in mid double-digit millions of euros
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Strategic management decisions
Duisburg (euro adhoc) - Klöckner & Co adopts profitability action plan, expects
boost to EBITDA in mid double-digit millions of euros
Duisburg, September 7, 2011 - As announced on presentation of the half-year
results on August 10, the Management Board of Klöckner & Co SE has responded to
the revised expectations for global economic growth with a profitability action
plan. Alongside measures to cut administration costs and overheads, the
initiatives notably center on structural changes in the country organizations.
This includes discontinuing business segments where target operating margins no
longer appear likely to be attained in the medium term due to the changed
operating environment. Klöckner & Co expects that the action plan will deliver
an annual boost to operating income in the mid double-digit millions of euros.
The one-off expenditure required to achieve this lies in the low double-digit
millions of euros and will be financed in full out of disposal proceeds. Despite
the discontinuation of business segments with sales in the mid triple-digit
millions of euros, the Management Board of Klöckner & Co is continuing its
Klöckner & Co 2020 growth strategy.
Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE: "Even though
the current volume development is still in line with expectations, by responding
early to the global economic growth slowdown we want to be sure that we regain
our EBITDA margin target of 6% as soon as possible."
About Klöckner & Co:
Klöckner & Co is the largest producer-independent distributor of steel and metal
products and one of the leading steel service center companies in the European
and American markets combined. The core business of the Klöckner & Co Group is
the warehousing and distribution of steel and non-ferrous metals as well as the
operation of steel service centers. More than 170,000 active customers are
supplied through around 290 distribution and service locations by around 11,000
employees in 16 countries in Europe and America. The Company had sales of around
EUR5.2 billion in the fiscal year 2010.
The shares of Klöckner & Co SE are admitted to trading on the regulated market
segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter
Wertpapierbörse) with further post-admission obligations (Prime Standard).
Klöckner & Co shares are listed in the MDAX® index of Deutsche Börse.
ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.
Further inquiry note:
Dr. Thilo Theilen
Leiter Investor Relations
Telefon: +49 (0)203 307 2050
E-Mail: thilo.theilen@kloeckner.de
end of announcement euro adhoc
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company: Klöckner & Co SE
Am Silberpalais 1
D-47057 Duisburg
phone: +49(0)203-307-0
FAX: +49(0)203-307-5000
mail: info@kloeckner.de
WWW: http://www.kloeckner.de
sector: Metal Goods & Engineering
ISIN: DE000KC01000
indexes: CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English