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RS - Reliance Steel & Aluminum Co News Story

$168.92 -1.7  -1.0%

Last Trade - 7:05pm

Basic Materials
Large Cap
Market Cap £7.69bn
Enterprise Value £8.32bn
Revenue £6.42bn
Position in Universe 890th / 6846

UPDATE 1-Kloeckner & Co hikes dividend by half on steel recovery

Wed 28th February, 2018 11:30am
* Proposes div of 0.30 eur/shr for 2017, up 50 pct 
    * Confirms would look at Thyssenkrupp Materials Services 
    * Shares up 5 pct at top of small-cap index 
 (Recasts, adds comments on Thyssenkrupp) 
    DUESSELDORF, Feb 28 (Reuters) - German steel distributor 
Kloeckner & Co  KCOGn.DE  pledged on Wednesday to raise its 
dividend by half, supported by recovering steel prices that have 
helped most players in the industry to report solid results in 
recent weeks. 
    The group proposed to pay out 0.30 euros per share for 2017, 
up 50 percent from 2016 and beating analysts' forecast for a 
dividend of 0.21 euros apiece. 
    Shares in Kloeckner & Co, which competes with Thyssenkrupp 
 TKAG.DE , Salzgitter  SZGG.DE  and U.S.-listed Reliance Steel & 
Aluminum  RS.N , rose more than 5 percent to the top of 
Germany's smallcap index  .SDAXI , which was down 0.5 percent. 
    Volatile steel prices have triggered further consolidation 
in the industry, with Thyssenkrupp and Tata Steel  TISC.NS  
planning to combine their European steel operations and 
ArcelorMittal  MT.AS  in the process of buying Italy's Ilva.*:nL8N1Q32PA*:nL8N1PX7HE 
    Kloeckner & Co Chief Executive Gisbert Ruehl reiterated the 
group would take a look at Thyssenkrupp's materials trading 
division Materials Services should it be put up for sale. 
    However, he said Thyssenkrupp had not yet decided whether to 
sell and Kloeckner would likely require a partner to do a deal 
involving Materials Services, which is more than twice as big as 
Kloeckner when measured by sales. 
    Kloeckner expects earnings before interest, tax, 
depreciation and amortisation (EBITDA) to at least match the 220 
million euros ($269 million) generated in 2017, and said they 
could be higher if steel prices continued to recover. 
    First-quarter EBITDA is expected to come in at 45 million-55 
million euros, the group said in presentation slides, compared 
with a 47 million Thomson Reuters I/B/E/S estimate. 
    Full-year sales are forecast to rise slightly in 2018, 
helped by higher steel demand in Europe and the United States. 
Analysts expect sales to reach 6.19 billion euros in 2018, up 
from 6.14 billion in 2017. 
 ($1 = 0.8185 euros) 
 (Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by 
Maria Sheahan and Susan Fenton) 
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