Klöckner expects supply growth
The Klöckner Company & The Co expects a significant increase in steel shipments in the third quarter compared to the same period in 2024.
The distribution group's expectations are driven by continued high demand from its American division, Kloeckner Metals Americas. In addition, due to higher prices in North America, the company expects a significant increase in revenue compared to the previous quarter.
In the second quarter, shipments were at the same level as in the same period of the previous year and amounted to 1.2 million tons, in North America the company was able to increase shipments to a record level of 762,000 tons, while weak demand in Europe led to a reduction in shipments from 423,000 tons to 402,000 tons. Consolidated revenue decreased from 1.8 billion euros to 1.6 billion euros (1.9 billion US dollars) due to lower market prices.
Net profit increased significantly, indicating an increase compared to the previous quarter, reaching 2 million euros in the second quarter after a net loss of 23 million euros in the second quarter of 2024.
During the conference call, which was broadcast from Klöckner's headquarters in Dusseldorf, Chief Executive Guido Kerkhoff also answered questions about the company's commitment to low-emission steel production after ArcelorMittal suspended investments in the energy transition in Germany.
Klöckner has introduced its Nexigen three brand. a few years ago, Kerkhoff emphasized that "we are glad that we were able to prove ourselves at an early stage." He said that the conversion "is a matter of cycles" and that it takes a considerable amount of time. "It is still unknown on which wave the transition will take place; you cannot predict in advance," he heard from Kallanish.
Christian Kel Germany
[b].kallanish.com[/b]