KLOECKNER & CO 4Q16, Strong quarter and decent prospects for FY17
​The German producer-independent steel and metal distributor reported a strong increase in profitability in 4Q16. While revenue declined by 4% yoy to €1.4bn on the back of lower volume in Europe and USA, partially due to location closures, reported EBITDA more than tripled to €37m boosted by favourable market effects as steel prices increased yoy. After a difficult FY15, penalised by declining steel price, FY16's EBITDA rebounded strongly to €196m driven by the recovery of the steel market. KCO’s conservative guidance expects FY17 to have slightly better EBITDA, with demand remaining subdued in Europe (1-2%) and more robust in the USA (3-4%) on the back of stronger economic growth and some infrastructure work. The company expects a very strong 1Q17 with EBITDA of €65-75m vs. €16m last year.
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