A continued firmness in steel prices across Europe and the US in Q3 2021 along with strict working capital management is expected to lift Kloeckner’s EBITDA as well as earnings during the second half of the year.
The positive outlook is also supported by the significant impact of the German steelmaker’s Surtsey Project, which is aimed at the digital transformation of the company by automating its core processes and restructuring its operations. Through this project, Kloeckner plans to reduce the number of its sites as well as workforce by the end of this year.
Kloeckner plans to achieve an EBITDA of €650-700mn ($771-830mn) in the full year 2021 with the Q3 2021 EBITDA expected to be stronger than previously anticipated at €200-230mn. Given this forecast, at the top end about €300mn in earnings anticipated for H2 2021 could be met by Q3.
Kloeckner expected an EBITDA of €260-290mn in early June for Q2 2021, which the company increased from the previous €130-160mn outlook in spring. Q2 results were also on the higher-end of the projected range.