Klöckner's shipments increased in the third quarter, and the company continues to focus on highly profitable products.
The Klöckner Company & Co increased shipments in the third quarter, but revenue declined due to lower prices. The focus continued to be on increasing the share of steel sales with higher profitability.
Shipments in the third quarter totaled 1.1 million tons, which is 1.9% more than a year earlier, Kallanish notes.
However, revenue decreased by 2.2% year-on-year to 1.6 billion euros ($1.83 billion) due to price factors. Ebitda, adjusted for special effects, amounted to 43 million euros, which is significantly higher than last year's figure of 21 million euros and, thus, continues the positive trend of the first two quarters of 2025, the company claims.
In the first nine months, Klöckner & Co increased shipments by 1.5% compared to the same period last year to almost 3.5 million tons, mainly due to the continued positive dynamics in the American segment of Klöckner Metals.
Revenue decreased to 4.9 billion euros from 5.1 billion euros. Ebitda excluding special effects amounted to 150 million euros compared to 104 million euros in January-September 2024.
"In difficult market conditions, we have once again proved that our strategy works by doubling operating income in the third quarter," says CEO Klöckner & Co Guido Kerkhoff. "We continued the positive trend in the American segment of Kloeckner Metals, and our increased focus on higher value-added businesses and service centers will drive continued revenue growth. The sale of eight distribution centers in the United States is another key step in the targeted reallocation of capital to areas with higher profitability."
In addition, the company has further expanded its capabilities as a technology partner in the German defense and infrastructure sector. At the beginning of the year, the German subsidiary of Klöckner & Co has acquired and successfully integrated Ambo — Stahl, a provider of high-quality technology services for the defense sector and infrastructure.
Thanks to this acquisition, Klöckner & The company has expanded its service portfolio and received official certification in Kassel for processing armored steel in accordance with the specifications of the German Federal Armed Forces (Bundeswehr). The steel company concludes that the expansion of capabilities is another step towards generating greater profits from increased defense spending across Europe.
In fiscal year 2025, Klöckner & Co still expects Ebitda, excluding special effects, to be between 170 million and 240 million euros. In addition, the company still expects significant positive cash flow from operating activities.