DUISBURG (dpa-AFX) - Klöckner & Co. (KCO) reported that its net income for the fiscal year 2018 was 69 million euros, compared to a prior-year figure of 102 million euros boosted by one-off tax effects. Earnings per share consequently stood at 0.68 euros, down from 1.01 euros in the prior year.
Operating income or EBITDA improved by 3.4% to 227 million euros. Aside from the positive trend in prices over much of the year, this increase was primarily a result of optimization measures.
Sales for the fiscal year 2018 rose 7.9% to 6.8 billion euros, largely on account of the higher price level.
The Management Board and the Supervisory Board consider it appropriate to hold the dividend constant with the prior year at 0.30 euros per share, as is to be proposed at the Annual General Meeting on May 15.
Klöckner said, 'XOM Materials, the independent industry platform launched by Kl?ckner & Co, likewise grew rapidly after going live in Europe in February 2018. Around 50 employees now work for the company at five locations. The platform is set to launch in the USA within the first half of 2019. A first financing round with external investors is expected to be completed by the end of the year.'
For its key markets of Europe and the USA, the company mostly expects to see slight growth in real steel demand and corresponding growth in Groupshipments for 2019. Sales, on the other hand, are anticipated to rise sharply on the back of investment made in expansion and an expected higher overall steel price level than in the preceding year.
Allowing for the new IFRS 16 (Leases), the company forecasts a slight increase in operating income (EBITDA) - even though a repeat of the previous year's positive price effects in the USA is not expected.
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