COVID-19 pandemic burdens the business of Klöckner & Co SE
by Hans Diederichs
Against the background of the impact of the global COVID-19 pandemic on the economy, the previous expectation for fiscal year 2020 published in the Group forecast by Klöckner & Co SE (“Klöckner & Co”) on March 10, 2020 cannot longer be maintained. Given the upcoming challenges posed by the spread of COVID-19, the global crisis measures taken in relation thereto and the unforeseeable developments in the coming weeks and months, the economic impact of the pandemic on Klöckner & Co can neither be adequately determined nor reliably quantified at this stage.
Klöckner & Co has significant liquidity reserves to counter the crisis. The management has reacted immediately on this crisis and taken comprehensive measures to protect the health of its employees as well as to prepare its business for this crisis. This comprises the activation of emergency plans and the temporary reduction of operations (inter alia by way of short time working). We are intensively dealing with the current situation and its development and will take appropriate further measures, as the case may be. Overall, the measures will generate a positive Cash flow from operating activities in the second quarter of 2020.
With respect to the first quarter of 2020, based on current estimates the operating income (EBITDA) of Klöckner & Co before material special effects is expected to be at the lower end of the previously published guidance range of €20-30 million.
Source: Klöckner & Co SE Graphic: Fotolia