Kloeckner posts loss on weak demand

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Publish time: 8th March, 2013      Source: ChinaCCM
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Kloeckner & Co. (KCO), the German-based steel trader reported a loss last year due to the shrinking demand for metals.

The net loss sum up to €198 million and the earnings before interest, taxes, depreciation and amortization including restructuring costs dropped to €62 million from €217 million in 2011.

The combination of weak demand from auto and construction sectors and increasing competition from China has cut the profit margins.

Kloeckner is ahead of plan with a restructuring program as it eliminates 16% of its workforce. Its full year EBITDA excludes restructuring costs fell 39% to €139 million. The expected EBITDA will be at €200 million this year.