German steelmaker Klöckner has guided Q3 and FY2020 operating income to be significantly better than previously expected. The company released the guidance on Thursday.
Gradual, but volatile, recovery of steel demand in Sep in the company’s primary markets, Europe and the US, and a rise in steel price improved its operating income (EBITDA) in Q3.
The adverse impact of the COVID-19 pandemic was mitigated by the company’s Surtsey transformation project in Q3. The project involves digitalization and restructuring.
Klöckner has revised its EBITDA guidance for Q3 from €30-40mn from the earlier €15-25 million before material special effects. FY2020 earnings guidance is revised to €75-95 million from €50-70 million projected earlier.
In Q2, Klöckner posted operating income of €11 million compared to €51 million in Q2 2019, but slightly above its guidance of €0-10mn.
($1= €0.85)