Outokumpu's fourth quarter weaker than expected
(Thomson Reuters ONE) -
STOCK EXCHANGE RELEASE
December 14, 2010 at 9.30 am EET
Based on the first two months financial performance, Outokumpu's fourth quarter
2010 is expected to be weaker than indicated in the third quarter interim
report. Fourth quarter underlying operational result is now expected to be
clearly negative instead of around break-even.
Continued economic uncertainty and closeness of the year-end have increased
hesitance among customers, which results in slightly lower than expected
delivery volumes and softer base price development for the fourth quarter.
Currently, prices have stabilised and there is potential to increase prices for
deliveries in the first quarter 2011.
Additionally, Outokumpu's actions to reduce inventories have resulted in cost
increases, which have had a negative impact on profitability. Currently,
Outokumpu does not expect any material raw-material related timing gains or
losses in the fourth quarter.
Outokumpu does not intend to re-start the postponed investments in Avesta,
Sweden (e.g. the new annealing and pickling line) in the foreseeable future. The
investments were originally decided in September 2007 and postponed in December
2008. Thus, Outokumpu will record a EUR 18 million write-down impacting the
fourth-quarter operating profit as a non-recurring item.
Outokumpu's fourth-quarter financial income will benefit from a EUR 8.5 million
non-recurring gain from the divestment of the shares in Okmetic Oyj in November.
For further information, please contact:
Esa Lager, CFO, tel. + 358 9 421 2516
Päivi Lindqvist, SVP - Communications and IR, tel. +358 9 421 2432, mobile
+358 40 708 5351
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 7 500 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
ENG Release Q4 2010_14122010:
http://hugin.info/3010/R/1471976/408607.pdf
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Source: Outokumpu Oyj via Thomson Reuters ONE
[HUG#1471976]
Unternehmensinformation / Kurzprofil:
Datum: 14.12.2010 - 08:31 Uhr
Sprache: Deutsch
News-ID 49667
Anzahl Zeichen: 3135
contact information:
Town:
Espoo
Kategorie:
Business News
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