In This Article:
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Shipments: Slightly above previous year levels, driven by strong performance in the Americas segment.
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Sales: EUR1.6 billion in Q3 2024, significantly down year-on-year due to lower average price levels.
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Gross Profit: EUR262 million in Q3 2024, down from EUR282 million in Q3 2023.
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Gross Profit Margin: Slight decrease from 16% to 15.9% year-on-year.
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EBITDA Before Material Special Effects: EUR21 million in Q3 2024, within guidance range.
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Operating Cash Flow: Negative EUR62 million in Q3 2024.
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Free Cash Flow: Negative EUR94 million in Q3 2024.
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Net Financial Debt: Increased to EUR872 million in Q3 2024 from EUR779 million in the previous quarter, but decreased from EUR923 million in Q3 2023.
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Equity Ratio: 48% with equity around EUR1.7 billion.
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Financial Outlook for Full Year 2024: EBITDA before material special effects forecasted between EUR121 million to EUR180 million.
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Operating Cash Flow Outlook: Expected to be significantly positive but below the previous year's level.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kloeckner & Co SE (KLKNF) achieved significant market share gains in the US, outperforming competitors in the platinum metals segment.
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The company successfully implemented efficiency measures and active cost control, maintaining stable operating expenses despite an inflationary environment.
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Strategic investments in automated welding capabilities and state-of-the-art laser capacities in the US have transformed low-margin distribution sites into reliable contributors to EBITDA.
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Kloeckner & Co SE (KLKNF) reduced financial debt significantly year over year, following the acquisition of National Materials of Mexico.
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The company continues to leverage digitalization and automation initiatives, with a 27% increase in digital quotes year over year, enhancing operational efficiency.
Negative Points
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Sales were considerably below the previous year due to an overall lower average price level, despite increased shipments.
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Gross profit for Q3 2024 was below Q3 2023 figures, driven by negative price effects from steel price corrections.
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Operating cash flow was negative at EUR62 million in Q3 2024, following a positive cash flow in the first half of the year.
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The European market remains challenging, with expected real steel demand to develop slightly negative in 2024.
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The company faces ongoing headwinds in the US steel consumption due to higher interest rates and political uncertainty, leading to subdued demand.