Outokumpu : Stainless steel maker Outokumpu shares up 16% on fourth quarter beat

Finnish stainless steel maker Outokumpu said on Monday its October-December core operating profit would be better than expected due to tighter management of its raw material costs, sending its shares 16% higher.

Outokumpu said the raw materials-related profit boost included improved raw material efficiency and hedging.

Outokumpu, which is due to publish fourth quarter results on Feb. 5, said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the period would be around 70 million euros ($77.7 million), up from earlier guidance of around 45 million.

Analysts were expecting adjusted EBITDA of 44.6 million euros, according to Refinitiv data, with estimates ranging from 26 million to 56 million.

Outokumpu has reported falling sales and profits in recent quarters as cheap Asian imports hit its sales in Europe.

Shares in Outokumpu jumped 16% in early trade to 3.29 euros, their highest since May.

(Reporting by Tarmo Virki; Editing by Alex Richardson; Editing by Kirsten Donovan)