DUISBURG (dpa-AFX) - Kloeckner & Co SE (KCO), a producer of steel and metal products, said Thursday that the negative impact of the COVID-19 pandemic on its operating business was further mitigated in the third quarter.
The company noted that the consistent implementation of the 'Surtsey' transformation project along with the positive digitalization and restructuring effects contributed to this.
The gradual, but volatile recovery in demand in its core markets of Europe and the United States, especially in September, and the recently improved price environment also had a positive effect on the company's operating income or EBITDA for the third quarter.
Based on preliminary calculations result, Klockner now forecasts third-quarter EBITDA before material special effects of 30 million euros to 40 million euros, compared to the prior outlook for EBITDA of 15 million euros to 25 million euros.
However, Kloeckner noted that the uncertainty about the business expectations for the fourth quarter remains high, against the background of the COVID-19 infection rates that are rising again.
But the company expects the ongoing digitalization and the consistent cost management within the scope of the 'Surtsey' project as well as the improving price development in Europe as well as the U.S. lead to an increased income expectation.
Accordingly, Kloeckner now projects fiscal 2020 EBITDA before material special effects in a range of 75 million to 95 million euros, compared to the prior outlook in a range of 50 million euros to 70 million euros.
The company still expects a positive cash flow from operating activities.
Kloeckner will publish the interim statement for the third quarter of 2020 on November 3, 2020.
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