On Wednesday, Germany-based service center group Kloeckner & Co SE lowered its guidance for full year earnings, saying it probably will not be able to achieve last year's earnings before interest, taxes, depreciation and amortization (EBITDA)and will probably cut about 1,300 jobs (compared to the previously planned 700 job cuts) due to escalation of the European debt crisis. The cuts will only impact its operations in Spain, France, and Eastern Europe. "Due to the escalating economic condition in Europe overall and a possible slowdown in the US economy, achieving the operating income (EBITDA) of the previous year is rather unlikely from today's perspective," the company said in a statement.
For the quarter ended June 30, Kloecker reported a net loss of 38 million euros (US$46.97 million), down from a 5 million euro profit in the comparable period last year. Operating income was 50 million euros (US$62.10 million).