DUISBURG (dpa-AFX) - Steel trader Klockner & Co is slashing its profit forecast for the current year due to difficult conditions in Europe. Operating earnings before interest, taxes, depreciation, amortization and significant special effects (adjusted Ebitda) are likely to amount to only 170 to 200 million euros instead of 220 to 280 million, the company, which is listed in the small-cap index SDax, announced surprisingly on Monday evening in Duisburg. Management is responding with an austerity program - and the share price is plummeting.

According to the plans of Klockner's top management, the number of employees in European sales is to be reduced by 10 percent. As a result, the adjusted operating profit is to be around 25 million euros higher from 2024. The cuts are to begin in the current year.

The news was initially badly received on the financial market: In after-hours trading on the Tradegate platform, the Klockner share lost more than eight percent compared to the Xetra closing price.

In the third quarter, Klockner & Co. achieved an adjusted operating profit of 41 million euros, compared with 16 million a year earlier. The Group attributed the increase to continued positive development in North America and Switzerland. However, the result was at the lower end of the forecast range - Klockner had envisaged 40 to 80 million. Klockner plans to announce the rest of its third-quarter results as planned this Tuesday (October 31)./stw/he