Duisburg,
Germany-based steel and metal distribution company Klöckner & Co. has reported a net profit of €22 million for 2014, compared to a net loss of €90 million in the previous year. Klöckner's sales revenue increased by two percent year on year to €6.5 billion, though, due to the lower price levels in Europe, sales revenues did not increase quite as strongly as shipments, amounting to 6.6 million mt, up 2.4 percent.
According to Klöckner, despite the lower price levels and largely driven by the acquisition of the Swiss rebar processor Riedo in March last year, sales in its Europe segment went up by two percent year on year to €4.1 billion. By contrast, the 2014 price levels in the US, which is by far the dominant part of the Americas segment, were higher overall than in the prior year. As a result, segment sales increased by 1.9 percent year on year to €2.4 billion.
Regarding 2015, Klöckner is optimistic about global economic growth going forward and about the course of business, even though major macroeconomic and geopolitical uncertainties remain. As things stand, steel demand is expected to grow by 1-2 percent in Europe and by 3-4 percent in the US, year on year. Taking into account a likely fall in steel price levels, Klöckner anticipates only a slight increase in sales revenues this year.