German steel distributor Klöckner & Co SE reported Wednesday sharply increased sales in Q1, attributed primarily to the acquisition of Macsteel Service Centers USA. At €45 million, operating income (EBITDA) was down on the strong first quarter of 2011--which was boosted by windfall profits--but €31 million up on the preceding quarter and so within the forecast range of €40 to €50 million.
Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE, said "The Macsteel acquisition meant we could particularly benefit from the robust economic trend in the USA. In Europe, as we expected, the environment remains difficult. With substantial overcapacity dominating the market, competition is very fierce. On top of this, customers continue to be unsettled by the ongoing sovereign debt crisis."
While the company experienced an overall quarterly 13.5 percent increase in turnover compared to Q4 2011, turnover in the Americas segment increased by 125.4 percent for the same period while the European segment experienced a 5.1 percent decrease.
Furthermore, the company anticipates an operating income (EBITDA) of between €50 and €60 million for the second quarter, provided the economic growth prospects do not further deteriorate in Europe and prices for steel products do not plummet. The Americas segment will once again make an above-average contribution to this result compared to their sales impact.