Outokumpu's third quarter 2009 - Financial performance on improving
trend in weak markets
(Thomson Reuters ONE) - PRESS RELEASEOctober 22, 2009 at 9.05 am EETHighlights- Operating loss EUR 65 million- Profitability improved due to higher prices, deliveries declined- No major improvement in underlying demand for stainlessGroup key figures, EUR million III/09 II/09 III/08Sales 587 617 1 270Operating profit -65 -94 -66Profit before taxes -81 -105 -82Net profit for the period -56 -87 -74Earnings per share, EUR -0.31 -0.48 -0.41Net cash generated from operatingactivities -12 23 242Stainless steel deliveries, 1000 tons 238 268 323Stainless steel base price, EUR/t 1) 1 307 1 117 1 143Stainless steel transaction price, EUR/t 2) 2 229 1 751 2 7251) CRU: German base price (2mm cold rolled304 sheet)2) CRU: German transaction price (2mm cold rolled 304 sheet)Uncertainty in stainless steel markets continued and there is nomajor improvement in the underlying demand. Inventories held bysteel distributors increased slightly in the third quarter, but theyare hesitant to build up inventories and short-term purchasingbehaviour is impacted by the changes in the nickel price.Outokumpu continued to cut back production during the third quarter.Additionally, annual maintenance breaks and seasonality of demandreduced deliveries for the period. Capacity utilization was 50-55%with total deliveries of stainless steel at 238 000 tons, 26% lowerthan a year ago. Base prices have continuously improved this year andthe average in the third quarter was higher than in 2008. Transactionprices, which also include raw material costs, were still below 2008levels. Average nickel price was 7% lower than a year ago andferrochrome price 57% lower. Due to lower deliveries and lowertransaction prices Outokumpu's sales declined 54% to EUR 587 millioncompared to the third quarter of 2008.Outokumpu's operating loss totalled EUR 65 million. The operatingloss includes EUR 32 million of raw material-related inventory gainsand EUR 15 million of non-recurring write-downs. The underlyingoperational result was negative at EUR 82 million. The underlyingprofitability improved from the second quarter due to higher baseprices and continued cost control. It was, however, weaker than inthe third quarter of 2008 (positive at EUR 60 million) due to lowerdelivery volumes. Operating profit in the third quarter of 2008included nickel-related inventory losses of EUR 60 million andnon-recurring provisions and write-downs of EUR 66 million.Outokumpu has now decided not to proceed with its investment projectto expand the melting capacity in Avesta, Sweden in the foreseeablefuture as there is no need for additional melting capacity in themedium-term. This project was part of the investment programme thatwas launched in 2007-2008 and almost totally postponed in December2008. Further decisions on the other postponed investments will bemade by the end of 2010.Outokumpu's underlying operational result in the fourth quarter isexpected to improve from the third quarter as a result of increasedbase prices, improved delivery volumes and tight cost management.With current metal prices, raw material-related inventory gains areexpected to be at the same level as in the third quarter, which mighttake the operating profit close to break-even.CEO Juha Rantanen:"Stainless steel markets have not seen any major improvement.Underlying demand continues to be weak and the purchasing behavior ofsteel distributors is very much driven by short-term developments innickel price. Outokumpu's delivery volumes in the third quarter werelow. On a positive note, our financial performance is on an improvingtrend and both prices and volumes are expected to increase in thefourth quarter. Our priorities in the current market are to balanceshort-term cost and cash flow management with longer term strategyimplementation. We have not given up our ambition of reachingbreak-even operating profit towards the end of the year."This press release is a summary of Outokumpu's official third quarter2009 interim report.For further information, please contact:Päivi Lindqvist, SVP - Communications and IRtel. +358 9 421 2432, mobile +358 40 708 5351paivi.lindqvist(at)outokumpu.comIngela Ulfves, VP - Investor Relations and Financial Communicationstel. +358 9 421 2438, mobile +358 40 515 1531ingela.ulfves(at)outokumpu.comEsa Lager, CFOtel +358 9 421 2516esa.lager(at)outokumpu.comOUTOKUMPU OYJOutokumpu is a global leader in stainless steel. Our vision is to bethe undisputed number one in stainless, with success based onoperational excellence. Customers in a wide range of industries useour 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 sustainablefuture. Outokumpu operates in some 30 countries and employs some 8000 people. The Group's head office is located in Espoo, Finland.Outokumpu has been listed on the NASDAQ OMX Helsinki since 1988.www.outokumpu.comhttp://hugin.info/3010/R/1349112/324955.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 08:05 Uhr
Sprache: Deutsch
News-ID 7248
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 277 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Outokumpu's third quarter 2009 - Financial performance on improving
trend in weak markets"
steht unter der journalistisch-redaktionellen Verantwortung von
Outokumpu Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
