Good Second Quarter for Kloeckner

The company reported that its sales in the Americas during the second quarter increased by 12 percent year over year to about $728 million. Earnings of $37.6 million were up about 6.6 percent from the prior quarter and second-quarter 2016.

Kloeckner’s outlook for full-year 2017 is positive, as the company projects a 3-4 percent jump in sales, led by increases in construction, manufacturing and energy. It expects flat sales to the shipbuilding sector and a slight dip in automotive.

Pointing to specific markets, Partalis said the construction sector is forecast to grow by 3-4 percent. Government infrastructure spending may accelerate this year. In the manufacturing sector, makers of construction and agricultural equipment are more optimistic. Energy demand could increase by 4-5 percent on the strength of a big increase in the rig count. Sales to the auto sector will be flat or down perhaps 2 percent this year, he said, but the auto build rate will still hit 17.1 million vehicles.

In other action, Kloeckner Metals has invested $11.3 million to expand its Greenville, S.C., operations. The expansion will add 50,000 square feet to the facility to house a new high-speed slitting line capable of processing aluminum and advanced high-strength steel. The company plans to begin operating the new line by Sept. 1.

Klockner & Co., the company’s German parent, reported its best half-year results in six years, with sales up 8.1 percent to $1.88 billion.