DUISBURG (dpa-AFX) - Lower steel prices and value adjustments drove steel trader Klockner & Co into the red last year. Nevertheless, a dividend is to be paid to shareholders. The management around CEO Guido Kerkhoff is more confident for the new year: Klockner expects demand to recover, which should also be reflected in the figures. This was well received by the market: The share, which is listed in the small-cap segment SDax, gained more than five percent in the morning.

The bottom line for 2023 was a loss of 190 million euros, as the company announced in Duisburg on Wednesday. In the previous year, the company had posted a profit of 259 million euros. The write-downs were related to the recently completed sale of the four national companies in France, the UK, the Netherlands and Belgium. Adjusted for this, the consolidated result was minus 0.3 million euros. Klockner nevertheless intends to pay a dividend of 0.20 euros per share, half the amount of the previous year. Klockner justified the payout with the clearly positive cash inflows. In addition, the very strong results of the previous year were only partially distributed.

With the sale of the four national companies, Klockner intends to concentrate on its largest market, North America, as well as its activities in Germany, Austria and Switzerland. In future, the company will focus more strongly on the processing and metalworking business. According to Klockner, this business area is characterized by long-term contracts and a high level of customer specialization. Demand is also more stable and profitability is higher.

Turnover fell from 8.3 billion to just under 7 billion euros in 2023. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) fell from 355 million to 190 million euros, which was in line with Klockner's most recent forecast. The company had already lowered its outlook last year.

For the current year, the company expects a normalization of general conditions and a slowdown in inflationary dynamics. Demand in the key sales markets in Europe and North America should increase significantly, and with it turnover and sales volumes. Klockner also anticipates a significant increase in earnings.

The recovery should already be visible in the first quarter: the company is forecasting an adjusted operating result of 30 to 70 million euros. This represents a significant improvement on the previous quarter, when 17 million euros were posted./nas/men/mis