Kloeckner slides on outlook cut, Q3 earnings below guidance

Kloeckner & Co SE

12/10/2022 07:43

** Shares of Kloeckner & Co  KCOGn.DE  slide 6.9% in the
early Frankfurt trade after the German metals trader on Tuesday
reported preliminary Q3 earnings below its forecast and cut 2022
outlook
    ** The company reports Q3 EBITDA before material special
effects at 16 mln euros ($15.55 mln) vs earlier guidance of
50-100 mln, citing a significant correction in steel prices
    ** Kloeckner forecasts FY EBITDA before material special
effects of around 400 mln euros vs previous outlook of more than
500 mln euros
    ** The outlook cut reflects active reduction in inventories
due to the macroeconomic environment and inventory write-downs,
the company says
    ** Jefferies says that converse to H1, when the annualised
adjusted EBITDA was flattered by inventory gains, the opposite
will happen in H2 with inventory losses heavily impacting
near-term results
    ** "There is no improvement in sight either, next year
should stay weak," a local trader comments
($1 = 1.0288 euros)
 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))