Interim report
Outokumpu interim report January-
Outokumpu classifies its Long Products businesses to be divested as assets held for sale and reports the businesses as discontinued operations. All figures and comments in this report refer to continuing operations unless otherwise stated.
Highlights in Q3 2022
- Stainless steel deliveries were 491,000 tonnes (546,000 tonnes)*.
-
Adjusted EBITDA increased to
EUR 304 million (EUR 288 million ). -
EBITDA was
EUR 304 million (EUR 288 million ). - ROCE rose to 26.8% (12.0%).
-
Operating cash flow (incl. discontinued operations) amounted to
EUR 238 million (EUR 180 million ). -
Net debt (incl. discontinued operations) decreased to
EUR 90 million (June 30, 2022 :EUR 289 million ). -
Gearing (incl. discontinued operations) decreased to 2.2% (
June 30, 2022 : 7.3%).
Highlights in January-
- Stainless steel deliveries were 1,656,000 tonnes (1,704,000 tonnes).
-
Adjusted EBITDA amounted to
EUR 1,146 million (EUR 668 million ). -
EBITDA was
EUR 1,146 million (EUR 668 million ). -
Operating cash flow (incl. discontinued operations) amounted to
EUR 489 million (EUR 213 million ). -
Net result was
EUR 775 million (EUR 376 million ).
Key figures, continuing operations | Q3/22 | Q3/21 | Q2/22 | Q1-Q3/22 | Q1-Q3/21 | 2021 | |
Sales | EUR million | 2,339 | 1,845 | 2,686 | 7,598 | 5,160 | 7,243 |
EBITDA | EUR million | 304 | 288 | 491 | 1,146 | 668 | 968 |
Adjusted EBITDA 1) | EUR million | 304 | 288 | 491 | 1,146 | 668 | 980 |
EBIT | EUR million | 241 | 229 | 431 | 961 | 494 | 674 |
Adjusted EBIT 1) | EUR million | 241 | 229 | 431 | 961 | 494 | 728 |
Result before taxes | EUR million | 225 | 212 | 413 | 920 | 442 | 610 |
Net result for the period | EUR million | 207 | 178 | 338 | 775 | 376 | 526 |
Earnings per share | EUR | 0.46 | 0.40 | 0.75 | 1.71 | 0.87 | 1.21 |
Diluted earnings per share | EUR | 0.42 | 0.37 | 0.69 | 1.58 | 0.80 | 1.13 |
Return on capital employed, rolling 12 months (ROCE) 2), 3) | % | 26.8 | 12.0 | 27.6 | 26.8 | 12.0 | 17.6 |
Capital expenditure | EUR million | 37 | 30 | 30 | 98 | 113 | 171 |
Stainless steel deliveries | 1,000 tonnes | 491 | 546 | 560 | 1,656 | 1,704 | 2,254 |
Personnel at the end of period, full-time equivalent 4) | 8,602 | 8,492 | 8,480 | 8,602 | 8,492 | 8,439 | |
Key figures, including discontinued operations | Q3/22 | Q3/21 | Q2/22 | Q1-Q3/22 | Q1-Q3/21 | 2021 | |
Net result for the period | EUR million | 189 | 182 | 385 | 825 | 394 | 553 |
Earnings per share | EUR | 0.42 | 0.40 | 0.85 | 1.82 | 0.91 | 1.26 |
Diluted earnings per share | EUR | 0.39 | 0.37 | 0.78 | 1.68 | 0.84 | 1.17 |
Return on capital employed, rolling 12 months (ROCE) 3) | % | 28.7 | 12.6 | 29.9 | 28.7 | 12.6 | 18.4 |
Net cash generated from operating activities | EUR million | 238 | 180 | 104 | 489 | 213 | 597 |
Net debt at the end of period | EUR million | 90 | 749 | 289 | 90 | 749 | 408 |
Debt-to-equity ratio at the end of period | % | 2.2 | 24.6 | 7.3 | 2.2 | 24.6 | 13.1 |
1) Adjusted EBITDA or EBIT = EBITDA or EBIT - Items classified as adjustments. | |||||||
2) According to definitions of key figures balance sheet component includes discontinued operations' assets and liabilities. | |||||||
3) Outokumpu has redefined its capital employed and ROCE definitions in Q2/2022. Comparative information has been restated accordingly. | |||||||
4) On | |||||||
*Figures in parentheses refer to the corresponding period for 2021, unless otherwise stated.
Results
Q3 2022 compared to Q3 2021
Outokumpu's sales increased to
Q3 2022 compared to Q2 2022
Outokumpu's sales decreased to
January-
During January-
President & CEO
Our third-quarter performance was solid. We delivered
Our stainless steel deliveries fell by 12% in a softening market with exceptionally high imports. Distributors accelerated de-stocking of commodity grades, while end-user demand remained stable.
Business area
The energy crisis and related uncertainty cast a shadow across the quarter especially in business areas
Due to high electricity prices, we have been optimizing our ferrochrome production, which has led to lower production volumes, and adjusted EBITDA for business area Ferrochrome declined to
Energy has become a major challenge in
We are determinedly progressing with our strategy. We concluded the first phase six months ahead of schedule and since then we have been ramping up the second phase. Having two customer-differentiated business lines, Advanced Materials and Stainless Europe, is proving to be a successful move in serving the specific needs of the two customer groups.
We have continued our strong emphasis on sustainability to further improve Outokumpu's position as the sustainability leader in the stainless steel sector. Earlier this year we launched our emission-minimized product, Circle Green, which has raised interest and demand among our customers across segments.
In September, we announced our plans to investigate a biocoke and biomethane plant investment in Tornio,
Market uncertainty will continue in the fourth quarter and beyond, and the global economy faces a risk of recession. Outokumpu is much more resilient than ever before, and our significantly strengthened balance sheet gives us the stamina and strength to see us through these challenging times.
Outlook for Q4 2022
Group stainless steel deliveries in the fourth quarter are expected to decrease by 0-10% compared to the third quarter.
The European ferrochrome benchmark price decreased to
Ferrochrome production continues at 50-60% of its full capacity due to a furnace shutdown and the optimization of the ferrochrome production, caused by exceptionally high electricity costs.
With current raw material prices, raw material-related inventory and metal derivative losses are expected to be realized in the fourth quarter.
Guidance for Q4 2022:
Adjusted EBITDA in the fourth quarter of 2022 is expected to be lower compared to the third quarter.
A live webcast and conference call today,
A live webcast and conference call to analysts, investors and representatives of media will be arranged later on the same day, at
To ask questions, please participate in the conference call by registering at https://call.vsy.io/access-8575. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.
All interim report materials, a link to the webcast and later on its recording are available at www.outokumpu.com/en/investors.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669
Media:
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization's basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,000 professionals in more than 30 countries, with headquarters in
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