EANS-News: Klöckner & Co SE: Positive EBITDA for the third quarter of 2009, for the first time since the beginning of the financial crisis; net debt fully eliminated, still no sign of a sustainable de

•Sales volume, sales and earnings in first nine months of 2009 well
below previous year‘s level, but stabilization continued during third
quarter
•2009 cost-cutting target of €100 million almost fully
achieved
•Net debt fully eliminated, net cash position of €139
million
•Acquisition strategy reinitiated – preliminary agreement
signed on largest acquisition since IPO
•Demand still fluctuating
on low level, but gradual improvement in demand expected next year

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quarterly report

Subtitle: •Sales volume, sales and earnings in first nine months of
2009 well below previous year‘s level, but stabilization continued
during third quarter •2009 cost-cutting target of €100 million almost
fully achieved •Net debt fully eliminated, net cash position of €139
million •Acquisition strategy reinitiated – preliminary agreement
signed on largest acquisition since IPO •Demand still fluctuating on
low level, but gradual improvement in demand expected next year

Duisburg (euro adhoc) - Duisburg, November 13, 2009 - After a
negative EBITDA (EBITDA - Earnings before interest, taxes,
depreciation and amortization) of -EUR132 million in the first
quarter and -EUR31 million in the second quarter, Klöckner & Co for
the first time this fiscal year generated a positive EBITDA of +EUR11
million in the third quarter. This improvement was primarily due to
continued strict cost cutting measures, more stable selling prices
and accordingly positive inventory valuation effects. Since the
demand is still significantly lower than in the previous year, the
earnings continue to be extremely unsatisfactory with a cumulative
EBITDA of -EUR151 million for the first nine months. The Klöckner &
Co Group´s sales volume of 3.2 million tons by the end of September
2009 was 34.6% below the previous year's level (4.8 million tons).
Sales dropped 44.2% to approximately EUR3.0 billion, compared to
EUR5.4 billion in the prior-year period.

Recovery in demand not yet sustainable - Company well positioned
First signs of a recovery of demand seen in September cannot yet be
regarded as a sustainable trend; the price trend is still volatile,
which is affecting customers´ buying behavior. After a positive trend
in the third quarter, some steel and metal products in Europe and
North America have come under price pressure again since October.
Taking this and seasonal effects into account, the Management Board
expects at best operating income to break even in the second half.
"Despite the fact that there is still no evidence of a sustainable
recovery in demand yet, we assume that demand has bottomed out and
that it will gradually improve next year. The difficult market
situation notwithstanding, Klöckner & Co believes that, due to
consequent implementation of the measures, it is well positioned to
take advantage of the opportunities arising in the crisis," says
Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE.

The significant reduction of working capital, the issuance of a
convertible bond in June and the successful rights issue in September
2009 allowed the Group to post a net cash position of EUR139 million
at the end of the third quarter, compared with net financial debt of
EUR571 million at the end of 2008. On the financing side, after
restructuring its financing and issuing the convertible bond, the
Group has facilities totaling EUR1.6 billion available. This cash
generation resulting from the decrease in working capital led to a
significant improvement in cash flow from operating activities to
EUR541 million, compared with EUR32 million a year earlier. In
addition, the Company managed in the first nine months to almost
fully achieve this years targeted personnel and operating cost
savings of EUR100 million net.

Resumption of the acquisition strategy Having suspended its
acquisition strategy when the economic crisis began last year,
Klöckner & Co is now returning to its original growth track.
"Safeguarding the financing, including the placement of the
convertible bond and the rights issue, provides a solid financial
foundation for resuming the acquisition strategy despite the ongoing
financial crisis. By signing a preliminary agreement to acquire the
Becker Stahl-Service Group in Germany, a steel service center company
with sales of about EUR600 million, we are using an outstanding
opportunity to once again accelerate our growth and improve our
earnings situation over the long term", explains Gisbert Rühl. The
Becker Stahl-Service Group operates one of the world's largest and
most modern steel service centers with headquarters in Bönen, North
Rhine-Westphalia. The acquisition will enable Klöckner & Co to extend
its market position for flat steel significantly while also gaining a
greater degree of diversification on the customer side. The Becker
Stahl-Service Group takeover will be the biggest acquisition since
the IPO in 2006. The transaction is subject to approval by the
anti-trust authorities and due diligence which has not yet been
performed. The final purchase agreement is expected to be concluded
in the beginning of 2010.

Other profit figures similar to EBITDA In line with the EBITDA trend,
EBIT (Earnings before interest and taxes) until the end of September
2009 totaled -EUR204 million (First nine months of 2008: +EUR686
million) and the Group´s EBT (Earnings before taxes) at -EUR249
million (First nine months of 2008: +EUR634 million). Due to tax
benefits, Klöckner & Co ended the first nine months of 2009 with a
consolidated net loss of -EUR198 million (First nine months of 2008:
+EUR526 million). After taking into account the loss for the first
nine months of the fiscal year, the equity ratio is at around 38% on
September 30, 2009, compared to 35% at the end of fiscal year 2008.

About Klöckner & Co Klöckner & Co is the largest producer-independent
distributor of steel and metal products in the European and North
American markets combined. The core business of the Klöckner & Co
Group is the storage and distribution of steel and non-ferrous
metals. About 185,000 active customers are supplied through around
250 distribution locations by around 9,200 employees in 15 countries
in Europe and North America. During the financial year 2008, the
Company achieved sales of approximately EUR6.7 billion. The shares of
Klöckner & Co SE are admitted to trading on the regulated market
segment (Regulierter Markt) of the Frankfurt Stock Exchange
(Frankfurter Wertpapierbörse) with simultaneous admission to the
sub-segment to the regulated market with further post-admission
obligations (Prime Standard). Klöckner & Co shares are listed in the
MDAX® Index of Deutsche Börse. ISIN: DE000KC01000; WKN: KC0100;
Common Code: 025808576.

end of announcement euro adhoc
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ots Originaltext: Klöckner & Co SE
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Contact persons:

Dr. Thilo Theilen - Head of Investor Relations &

Corporate Communications

Phone: +49-(0)203-307-2050

E-Mail: thilo.theilen@kloeckner.de

Claudia Uhlendorf - Spokesperson

Phone: +49-(0)203-307-2289

E-mail: claudia.uhlendorf@kloeckner.de

Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade