Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Germany
  4. Xetra
  5. Outokumpu Oyj
  6. News
  7. Summary
    OUTA   FI0009002422

OUTOKUMPU OYJ

(OUTA)
  Report
Delayed Xetra  -  08:02:38 2022-07-22 am EDT
4.080 EUR   +1.75%
01/27Several Finnish unions plan strikes in February over wage disputes
RE
01/26Outokumpu Oyj : publishes its financial statements release 2022 and arranges a webcast on February 9, 2023
PU
01/19Outokumpu to Resume Ferrochrome Furnace Ahead of Schedule
MT
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

OUTOKUMPU'A' : Outokumpu's first quarter 2011 - better demand improved profitability

04/20/2011 | 02:15am EST

PRESS RELEASE
20 April 2011 at 9.10 am EET

 

Highlights

 

- Operating profit EUR 33 million, underlying operational result EUR -12 million
- Improving end-user demand and restocking by distributors - deliveries up 14%
- Second quarter operating profit expected to be slightly positive or around break-even
- Mika Seitovirta appointed Outokumpu's CEO from 1 April 2011

               
Group key figures, EUR million            
    I/11 IV/10 I/10 2010  
Sales   1 371 1 162 929 4 229  
Operating profit   33 -85 -21 -83  
Profit before taxes   17 -86 -32 -143  
Net profit for the period   16 -91 -21 -124  
Earnings per share, EUR   0.09 -0.50 -0.11 -0.68  
Net cash generated from operating activities   -10 18 -87 -497  
             
Stainless steel deliveries, 1 000 tonnes   380 336 333 1 315  
Stainless steel base price, EUR/t 1)   1 215 1 213 1 235 1 252  
Stainless steel transaction price, EUR/t 2)   3 115 2 909 2 329 2 780  
             
1) CRU - German base price (2 mm cold rolled 304 sheet)            
2) CRU - German transaction price (2 mm cold rolled 304 sheet)        
             

Demand for stainless steel began to improve in early 2011. Growth in the first quarter was supported by restocking among distributors. In March the nickel price declined and this resulted in some destocking towards the end of the quarter. The coming summer period may create some softness in demand from distributors in the second quarter. Underlying demand has continued to improve and is expected to remain stable in the second quarter. While the order intake from investment-driven end-use segments has been improving, no major projects utilising special grades have materialised.

 

Outokumpu's deliveries of stainless steel increased by 14% to 380 000 tonnes in the first quarter compared to the first quarter of 2010. Base prices were unchanged but transaction prices, which also include raw-material costs, increased by 34%. The prices of the key raw-materials, nickel and ferrochrome, gained strongly from their year-ago levels: nickel price increased by 35% and ferrochrome price by 24%. Clearly higher delivery volumes and transaction prices resulted in a strong 48% increase in sales, which amounted to EUR 1.4 billion in the first quarter.

 

Outokumpu's operating profit in the first quarter was positive at EUR 33 million whereas in the first quarter of 2010 the Group reported EUR 21 million operating loss. The operating profit benefits from EUR 45 million of raw-material related inventory gains (EUR 10 million gains in 2010). Thus, the underlying operational result was at loss by EUR 12 million compared to EUR 32 million loss in the first quarter of 2010. The main reason for the profitability improvement is increase in delivery volumes.

 

Net cash from operating activities was slightly negative at EUR -10 million as EUR 93 million of cash was tied up in the working capital during the quarter. Outokumpu's gearing increased to 80.4%, above the Group's target maximum of 75%.

 

In February, Outokumpu's Board of Directors appointed Mr Mika Seitovirta as the new Chief Executive Officer from 1 April 2011. The earlier CEO Mr Juha Rantanen will support the new CEO in his taking on the new duties until August 2011.

 

Outokumpu estimates that the Group's delivery volumes in the second quarter will be at a similar level as the volumes in the first quarter. Average base prices are expected to be somewhat higher compared to the average prices in the first quarter. Outokumpu's operating profit in the second quarter is expected to be slightly positive or around break-even with no material impact from raw-material related inventory gains or losses (at current metal prices).

 

CEO Mika Seitovirta:

 

"The first weeks at Outokumpu have proven to be a great learning experience. I am energised and encouraged while going forward and gaining further knowledge of this great company and fascinating industry. Our immediate actions will be focused on profitability, cash flow and improving the balance sheet. Most of the management attention this year will be spent on the implementation of the short-term agenda, which is currently being prepared."

 

This press release presents the highlights of Outokumpu's official interim report, which has been distributed as a separate stock exchange release and is available at www.outokumpu.com/investors.

 

For further information, please contact:

 

Päivi Lindqvist, SVP - Communications and IR
tel. +358 9 421 2432, mobile +358 40 708 5351
paivi.lindqvist@outokumpu.com

 

Ingela Ulfves, VP - Investor Relations and Financial Communications
tel. +358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com

 

Esa Lager, CFO
tel. +358 9 421 2516
esa.lager@outokumpu.com

 

OUTOKUMPU OYJ

 

 

 

Outokumpu is a global leader in stainless steel with the vision to be the undisputed number one. Customers in a wide range of industries use our stainless steel and services worldwide. Being fully recyclable, maintenance-free, as well as very strong and durable material, stainless steel is one of the key building blocks for sustainable future. Outokumpu employs some 8 000 people in more than 30 countries. The Group's head office is located in Espoo, Finland. Outokumpu is listed on the NASDAQ OMX Helsinki.
www.outokumpu.com:
http://www.outokumpu.com

 




This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Outokumpu Oyj via Thomson Reuters ONE

HUG#1507890
All news about OUTOKUMPU OYJ
01/27Several Finnish unions plan strikes in February over wage disputes
RE
01/26Outokumpu Oyj : publishes its financial statements release 2022 and arranges a webcast on ..
PU
01/19Outokumpu to Resume Ferrochrome Furnace Ahead of Schedule
MT
01/19Outokumpu Oyj : restarts the third ferrochrome furnace earlier than planned but continues ..
PU
01/04Global markets live: Microsoft, Nvidia, Cisco, Salesforce, Rivian...
MS
01/04Transcript : Outokumpu Oyj - Special Call
CI
01/03Steelmaker Outokumpu Closes EUR228 Million Sale of Certain Long Products Units
MT
01/03Outokumpu has completed the divestment of majority of its Long Products business
AQ
01/03Marcegaglia Steel S.P.A. completed the acquisition of Long Products Business from Outok..
CI
2022Repurchase of Outokumpu's own shares
AQ
More news
Analyst Recommendations on OUTOKUMPU OYJ
More recommendations
Financials
Sales 2022 9 715 M 10 546 M 10 546 M
Net income 2022 926 M 1 005 M 1 005 M
Net Debt 2022 27,5 M 29,8 M 29,8 M
P/E ratio 2022 2,76x
Yield 2022 4,85%
Capitalization 2 359 M 2 560 M 2 560 M
EV / Sales 2022 0,25x
EV / Sales 2023 0,24x
Nbr of Employees 8 602
Free-Float 79,9%
Chart OUTOKUMPU OYJ
Duration : Period :
Outokumpu Oyj Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 13
Last Close Price 5,34 €
Average target price 5,43 €
Spread / Average Target 1,66%
EPS Revisions
Managers and Directors
Heikki Pekka Mikael Malinen President & Chief Executive Officer
Pia Aaltonen-Forsell Chief Financial Officer
Kari Alpo Erik Jordan Chairman
Stefan Erdmann Chief Technology Officer
Pierre Vareille Independent Director
Sector and Competitors
1st jan.Capi. (M$)
OUTOKUMPU OYJ0.00%2 560
NUCOR CORPORATION28.84%42 218
ARCELORMITTAL19.80%26 078
STEEL DYNAMICS, INC.21.73%20 881
NIPPON STEEL CORPORATION20.29%19 542
POSCO HOLDINGS INC.12.66%19 177