UPDATE 1-Kloeckner Q3 core profit misses estimates
* Q3 EBITDA 11 mln eur vs Reuters poll avg 16 mln eur
* Recovery in demand not yet sustainable
* Sees demand improving next year
* Shares indicated down 4.8 pct in pre-market trade
(Adds background, comment, share indication)
FRANKFURT, Nov 13 (Reuters) - Germany's Kloeckner & Co (KCOGn.DE) said recovery in demand was not yet sustainable but it expected demand will gradually improve next year after it reported a third-quarter core profit that missed expectations. "First signs of a recovery of demand seen in September cannot yet be regarded as a sustainable trend; the price trend is still volatile," Europe's leading independent steel and metals distributor said on Friday.
"After a positive trend in the third quarter, some steel and metal products in Europe and North America have come under price pressure again since October," the group said.
"Taking this and seasonal effects into account, the management board expects at best operating income to break even in the second half," it said.
Kloeckner said cost cuts and improved cash flow helped its earnings before interest, taxes, depreciation and amortisation
(EBITDA) rise to 11 million euros from a second quarter loss of 31 million. Analysts had expected demand to stabilise quarter-on-quarter and that inventory restocking was under way among distributors. They had on average estimated a core profit of 16 million euros on sales of 988 million euros. [nL6726610]
Kloeckner's comments came after U.S. rival Reliance Steel (RS.N) failed to provide a quantitative forecast for the fourth quarter, citing uncertain business conditions. [nN22501137]
Kloeckner trades at 147.5 times 12-month forward earnings, according to Thomson Reuters StarMine, which weights analysts' estimates according to their track record.
((Reporting by Marilyn Gerlach and Nicola Leske; Reuters Messaging: marilyn.gerlach.reuters.com@reuters.net; 00 49 69 7565 179)) Keywords: KLOECKNER&CO/RESULTS
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