EANS-News: Klöckner & Co SE: Sales volume, sales, and earnings significantly lower than previous year´s figures - however a return to a positive operating result seen over the last two quarters; exter

• Sales volume with -31% and sales with -43% heavily decreased in
2009
• EBITDA with -€68 million and net income with -€186 million
clearly negative
• Due to the consistent response to the crisis net
debt completely eliminated, financing secured and expanded, costs
significantly reduced
• Resumption of growth strategy through
acquisitions and organic growth
• Sales growth of more than 20%
incl. acquisitions and clearly positive operating result (EBITDA) are
expected for 2010, although the market conditions are still
challenging

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

annual report

Subtitle: • Sales volume with -31% and sales with -43% heavily
decreased in 2009 • EBITDA with -€68 million and net income with
-€186 million clearly negative • Due to the consistent response to
the crisis net debt completely eliminated, financing secured and
expanded, costs significantly reduced • Resumption of growth strategy
through acquisitions and organic growth • Sales growth of more than
20% incl. acquisitions and clearly positive operating result (EBITDA)
are expected for 2010, although the market conditions are still
challenging

Duisburg (euro adhoc) - Duisburg, March 9, 2010 - The global
financial and economic crisis has also severely impacted sales
volume, sales and earnings of Klöckner & Co. At the same time, the
Company´s quick and appropriate response to the crisis enabled it to
secure financing early on, reduce costs by approximately EUR130
million, completely eliminate net debt as well as successfully place
a convertible bond and a rights issue. "As a result of our fast
implemented crisis measures we created ourselves the necessary
manoeuvring room and early resumed our acquisition strategy with the
takeover of the Becker Stahl-Service Group in Germany and the
acquisition of Bläsi AG in Switzerland", said Gisbert Rühl, CEO of
Klöckner & Co SE.

Significant decline in sales volume, sales, and earnings The sales
volume for the full year of 2009 dropped by -31.0% to 4.1 million
tons (in 2008: 6.0 million tons). This was primarily the result of
the weak economy. Sales declined by -42.8% to EUR3.9 billion (in
2008: EUR6.7 billion) due to substantially lower prices in addition
to a declining sales volume. The EBITDA (earnings before interest,
taxes, depreciation and amortization) amounted to -EUR68 million in
2009 compared to +EUR601 million in the previous year. After a
clearly negative EBITDA in the first two quarters of 2009, positive
operating results were once again achieved in the second half of 2009
with +EUR11 million in the third quarter and +EUR6 million in the
fourth quarter. The positive results can primarily be attributed to
the higher price level as well as to the implemented cost cutting
measures.

In terms of EBITDA changes, the EBIT (earnings before interest and
taxes) amounted to -EUR178 million at the end of 2009 (in 2008:
+EUR533 million) and the Company´s pre-tax earnings were -EUR240
million (in 2008: +EUR463 million). Consolidated net income was also
negatively impacted by EUR42 million from impairment charges. Taking
into consideration a positive tax effect, Klöckner & Co ended 2009
with a consolidated net loss of -EUR186 million (in 2008: a
consolidated net profit of +EUR384 million).

Corporate and financial structures optimized With its quick response
to the crisis, Klöckner & Co was able to turn the net financial debt
of EUR571 million at the end of 2008 into a net cash position of
EUR150 million. This was achieved by the significant reduction of
working capital as well as by the placement of a growth oriented
rights issue in September 2009. The funds released from the reduction
in working capital also substantially improved cash flow from
operating activities to EUR565 million compared to EUR187 million for
the same period last year. At the same time, the annual cost
reduction target of EUR100 million for operating and personnel
expenses was significantly exceeded with savings amounting to
approximately EUR130 million. Furthermore, the Company restructured
its financing early on to be crisis-resistant and increased it's
equity ratio to 41% with the rights issue. This created a solid
foundation for the Company´s future growth strategy.

External and organic growth The Company´s growth strategy resumed
with the acquisition of Becker Stahl-Service in Germany and Bläsi AG
in Switzerland is accelerating again. "We are still looking for
attractive companies in our core markets of Europe and North America
which meet our demanding acquisition criteria", says Gisbert Rühl. In
addition to external growth, Klöckner & Co initiated measures to
generate organic growth. "In doing so, we especially want to make use
of competitors´ liquidity problems to expand our market share
systematically", explains Gisbert Rühl.

Only slight increase in real demand For 2010, Klöckner & Co expects
in a still challenging environment only a slight increase in real
demand. The expected increase of the sales volume of 10% without
acquisitions will be primarily driven by inventory build-up along the
value chain. Including the impact of the two acquisitions the Company
is expecting sales growth of more than 20%. Based upon these
expectations, Klöckner & Co is anticipating a clearly positive
operating result (EBITDA) for 2010. Yet the result will not be
sufficient to meet the Company´s target of achieving an operating
margin of at least 6%.

"Even if the crisis persists, our quick response based on solid
funding and improved efficiency will enable us to look ahead and
consistently pursue our growth strategy, while the market continues
to wait for a recovery", says Gisbert Rühl.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Klöckner & Co SE
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

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