Klöckner & Co AG

2006 - An outstanding year in the corporate history of Klöckner & Co AG

. Very good development of earnings in 2006 . Positive share performance . Further reduction of debt . Further development of expansion strategy according to plan . Positive outlook for 2007 financial year

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balance/annual statement

Duisburg (euro adhoc) - Duisburg, March 29, 2007 - The multi-metal distribution company Klöckner & Co AG looks back on an outstanding year 2006. Based on the operating profit, 2006 was the most successful year in Klöckner & Co's company history. At the same time, however, 2006 was a year of a new embarkment: on exactly the same day as the establishment of the company by Peter Klöckner 100 years previously Klöckner & Co went public on June 28, 2006 and thus marked the beginning of a new chapter in the company's history. Successful introduction of the Klöckner & Co share on the Frankfurt Stock Exchange created for the Group a new, broad owner structure and simultaneously a very good basis for implementation of future strategic goals.

Most successful initial public offering in 2006 The price of the Klöckner & Co share has developed extremely positively since the IPO. At the end of the year the share was quoted at E32.81. This meant, measured against the issue price of E16.00 per share, its value had more than doubled within six months and was thus the most successful initial public offering in Germany in 2006. In the meantime the price has risen further: the closing price on March 26, 2007 was E41.14 (Xetra).

After the Klöckner & Co share was included in the SDAX® share index of the Deutsche Börse Group back on September 18, 2006, non-scheduled admission of the share to the MDAX® index took place on January 29, 2007.

Change in Klöckner & Co's shareholder structure The increase in the portion of Klöckner & Co's freely marketable shares to 84.5% effective as of the end of January 2007 was performed in two stages. At the end of October 2006 the majority shareholder, Multi Metal Investment (MMI), an investment company of investor Lindsay Goldberg & Bessemer, sold 20% of its 65% holding in Klöckner & Co to national and international investors within the framework of a placement. At the end of January 2007 MMI then sold a further 30% of its Klöckner & Co shares to international investors and now holds 15.5% of the total Klöckner & Co shares. According to a notification as per § 21 subsection 1 and § 22 subsection 1 WpHG, Franklin Mutual Advisors Inc., Short Hills, has held 10.81% of the voting rights since March 1, 2007.

Excellent result / dividend payout Supported by the good business situation for metal distribution in 2006, the Klöckner & Co Group increased its sales volume in 2006 by 4.4% over the previous year to 6.1 million tons (2005: 5.9 million tons). Group sales rose from E5.0 billion in 2005 to over E5.5 billion in 2006, resulting in sales growth for the Klöckner & Co Group of 11.4% as compared to the comparable figure for 2005. In addition to the increased sales volume and improved margins, especially the measures within the framework of the STAR performance program led to significant improvement in earnings development last year.

The EBITDA (earnings before interest, taxes, depreciation and amortization) of the Klöckner & Co Group totaled around E395 million in 2006, more than double the economically comparable, adjusted value of E197 million for the previous year. The European and North American operating segments each achieved an EBITDA considerably above the 2005 figure, i.e. about E366 million (Europe) and around E79 million (North America) respectively.

The Group's EBIT (earnings before interest and taxes) amounted to E337 million in 2006 after an economically comparable operating result of E135 million in the previous year. The earnings before taxes improved substantially from around E81 million in 2005 to E273 million. The consolidated results before minority interests in 2006 were E235 million. The equity ratio as of December 31, 2006 amounted to 31.3%.

The net indebtedness was consistently reduced in the course of the 2006 financial year and totaled E365 million at the end of 2006.

The Management Board and the Supervisory Board of Klöckner & Co will propose distribution of a dividend of E0.80 per share for the 2006 financial year. This is equivalent to a payout ratio of 30% of the consolidated income after deduction of extraordinary or non-operational income. This means Klöckner & Co AG meets the payout target announced within the framework of the initial public offering.

Growth strategy of Klöckner & Co AG "We are pleased about the very good 2006 financial year. Besides the outstanding market development, the STAR performance program in particular contributed to the good development of results. The core idea of "STAR" is to apply exceptionally successful business practices and models to other country operations and generate new ideas in cross-border working groups. Special focus is placed on optimizing purchasing, the distribution network and inventory management. This year, too, we will continue the successful program," stated the Chairman of the Management Board of Klöckner & Co AG, Dr. Thomas Ludwig.

Furthermore, Klöckner & Co successfully continued its expansion strategy by means of taking over small and medium-sized distribution enterprises. The first acquisition in 2006 was Targe, a French company. In July 2006 this was followed by acquisition of Aesga, a Spanish distribution group for special steel. In October the US country operation was significantly strengthened through takeover of the distribution company Action Steel in the Midwest of the USA with locations in Indianapolis, Indiana and Louisville, Illinois. In October the Klöckner & Co Group also acquired Gauss, a Swiss company in the Zurich area.

As announced, this growth strategy will be pursued further in 2007, too. The French company Tournier was already taken over at the beginning of 2007.

Outlook for 2007 In 2007, too, Klöckner & Co continues its successful STAR performance program. In addition, the company has already started to intensify its acquisition activities. Takeover of around ten to twelve small and medium-sized distribution enterprises is planned in 2007. Besides external growth, Klöckner & Co also targets further organic growth in the existing core markets. In this context the Group is concentrating on extending its product lines and range of services and on expanding geographically in Eastern Europe.

The year 2007 has already started off on a very good note. Stable development of demand has continued, particularly in the important sectors for Klöckner & Co, i.e. the building industry, mechanical engineering and plant construction.

For 2007 Klöckner & Co assumes a predominantly stable demand and price development in the steel market. Multi-metal distribution will continue to profit from this development and against this background Klöckner & Co again expects a satisfactory result for the year 2007.

@@start.t2@@|Income Statement                      |              |Jan.1-        |March16 -      |Pro          |
|                                                |              |Dec.31,2006|Dec.31,2005* |Forma**    |
|                                                |              |                 |                    |Jan.1-      |
|                                                |              |                 |                    |Dec.31,200|
|                                                |              |                 |                    |5              |
|                                                |              |                 |                    |                |
|Sales                                        |E Million|5,532         |3,969            |4,964        |
|Earnings before interest,        |E Million|395            |154                |197          |
|taxes, depreciation and          |              |                 |                    |                |
|amortization (EBITDA)              |              |                 |                    |                |
|Earnings before interest and  |E Million|337            |108                |135          |
|taxes (EBIT)                            |              |                 |                    |                |
|Earnings before taxes (EBT)    |E Million|273            |59                 |81            |
|Earnings after taxes (EAT)      |E Million|235            |43                 |52            |
|Earnings per share (undiluted)|E            |4,44          |-                  |-              |
|                                                |              |                 |                    |                |
|Key Figures                              |              |                 |                    |                |
|Sales volume                            |to'000    |6,127         |                    |5,868        |
|Employees at end of period      |              |9,688         |                    |9,901        |
|                                                |              |                 |                    |                |

*) Excluding release of negative goodwill in the amount of E147 million, restructuring expenses of E17 million, disinvestment expenses  of E2 million and, in the EBT and EAT, excluding transaction costs in the amount of E36 million **) Excluding release of negative goodwill in the amount of E139 million, restructuring expenses of E17 million, results from disinvestment of E2 million and, in the EBT and EAT, excluding transaction costs in the amount of E39 million

Explanation of pro formas: The pro forma 2005 financial information aims to provide improved insight into the consolidated results of operations and the financial situation of the Group. It assumes that the change in shareholder and corporate structure occurred on January 1, 2005, instead of March 16, 2005.

About Klöckner & Co:

Klöckner & Co is the largest producer-independent steel and metal distributor@@end@@

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 200,000 active customers are supplied through approximately 240 distribution locations in 14 countries in Europe and North America.

Klöckner & Co was founded more than100 years ago by Peter Klöckner. During the financial year 2006, the company achieved sales of approximately E5,5 billion with around 10,000 employees.

The shares of Klöckner & Co Aktiengesellschaft are admitted to   trading  on  the official market segment  (Amtlicher  Markt)  of  the Frankfurt  Stock  Exchange (Frankfurter Wertpapierbörse) with simultaneous  admission  to  the  sub-segment (Prime  Standard)  to   the    official    market    with    further    post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.


Peter Ringsleben, Claudia Uhlendorf - Corporate Communications

Klöckner & Co AG Am Silberpalais 1 D - 47057 Duisburg

Peter Ringsleben Phone: +49 203 307 2800 Fax: +49 203 307 5060 e-mail: peter.ringsleben@kloeckner.de

Claudia Uhlendorf Phone: +49 203 307 2289 Fax: +49 203 307 5103 e-mail: claudia.uhlendorf@kloeckner.de

@@start.t3@@end of announcement                                                 euro adhoc 29.03.2007 07:47:33

ots Originaltext: Klöckner & Co AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Nadine Hagemus
Telefon: +49(0)203-307-2288
E-Mail: nadine.hagemus@kloeckner.de

Branche: Metal Goods & Engineering
ISIN:      DE000KC01000
WKN:        KC0100
Index:    CDAX, Classic All Share, Prime All Share, MDAX
Börsen:  Frankfurter Wertpapierbörse / official dealing/prime standard
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Bayerische Börse / free trade

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