HELSINKI, Oct. 30, 2024 /PRNewswire/ — 

Highlights in Q3 2024

• Chrome steel deliveries had been 459,000 tonnes (449,000 tonnes)*.
• Adjusted EBITDA amounted to EUR 86 million (EUR 51 million).
• EBITDA used to be EUR 81 million (EUR 18 million).
• ROCE amounted to -7.1% (5.3%).
• Independent money wave used to be EUR -113 million (EUR -24 million incl. discontinued operations).
• Profits consistent with proportion used to be EUR 0.05 (EUR -0.13).
• On July 9, 2024, Kati ter Horst used to be appointed because the President and CEO of Outokumpu and he or she began nearest the reporting length on October 1, 2024.

Highlights in Q1–Q3/2024

• Chrome steel deliveries had been 1,371,000 tonnes (1,455,000 tonnes)*.
• Adjusted EBITDA amounted to EUR 180 million (EUR 445 million).
• EBITDA used to be EUR 174 million (EUR 401 million).
• ROCE amounted to -7.1% (5.3%).
• Independent money wave used to be EUR -105 million (EUR 134 million incl. discontinued operations).
• Profits consistent with proportion used to be EUR -0.02 (EUR 0.30)
• The have an effect on of the political clash in Finland within the first part of 2024 used to be roughly EUR -60 million.
• The dividend of EUR 110 million from the while 2023 used to be paid in the second one quarter.
• The latest proportion buyback program used to be finished on February 29, 2024, and Outokumpu repurchased 8,357,545 stocks throughout 2024.

*Figures in parentheses please see the corresponding length for 2023, until another way said.

All over 2022, Outokumpu introduced that it had signed an commitment to divest the vast majority of the Lengthy Merchandise trade operations to Marcegaglia Metal Team and Outokumpu reclassified its Lengthy Merchandise companies to be divested property held on the market and discontinued operations. The divestment used to be finished on January 3, 2023, and the acquire on sale of EUR 5 million used to be reported in discontinued operations. On this record, the entire comparative numbers are reported as persisted operations with out the have an effect on of the acquire on sale, if now not another way said.

President & CEO Kati ter Horst:

“I am honored to have started as Outokumpu’s President and CEO and be given the opportunity to lead the company into its next strategic phase. My immediate focus will be on ensuring a smooth transition and continuing to deliver on the EUR 350 million profitability improvement target by the end of 2025. I want to thank my predecessor Heikki Malinen for his management to support Outokumpu’s stability sheet and making us the undisputed sustainability chief in stainless-steel. This can be a just right foot on which to form our past luck.

My priorities are to beef up our operational efficiency, support our competitiveness, and guard monetary self-discipline. Those are much more impressive now, as we face difficult marketplace statuses each in Europe and the Americas. For us at Outokumpu, monetary self-discipline method appearing promptly in line with a converting marketplace atmosphere. On this condition, we alter our trade and steer it in opposition to specializing in money wave and shareholder returns.

All over the 3rd quarter, Outokumpu’s adjusted EBITDA larger to EUR 86 million, past stainless-steel deliveries reduced via 2% in comparison to the former quarter. Imports into each Europe and North The usa have persisted to extend, and put force on stainless-steel costs. Alternatively, we maintained our sturdy marketplace positions, rating primary in Europe and quantity two in North The usa.

In trade section Europe, adjusted EBITDA stepped forward to EUR 59 million, and stainless-steel deliveries remained solid in comparison to the former quarter. Inside of complex fabrics, I’m happy to welcome Rolf Schencking to Outokumpu’s Management Crew. He brings with him in depth technical and business revel in within the uniqueness stainless-steel trade.

In trade section Americas, adjusted EBITDA amounted to EUR 5 million, and stainless-steel deliveries reduced via 8% in comparison to the former quarter. Supply volumes replicate the deterioration within the production sector, together with some postponements of deliveries to the fourth quarter because of spillage at our Mexico mill. Alternatively, our long-term view in regards to the U.S. marketplace left-overs extremely certain.

Industry section Ferrochrome had a forged outcome due to skillful operational efficiency and altered EBITDA reached EUR 29 million. The call for for our low emission ferrochrome remained resilient. Our Kemi mine is the one chrome mine within the EU section with the bottom carbon footprint globally and it’s going to turn into the primary carbon-neutral mine on the earth via 2025.

Protection is our precedence. Our protection efficiency remained at a world-class degree in spite of a rather upper incident fee within the 3rd quarter. We wish to safeguard that every one our staff get house cover each while.

Decarbonization is likely one of the key focal point fields in Outokumpu’s technique. I’m happy to situation that we’re firmly dedicated to this trail and are making just right proceed. We now have maintained our recycled materials content material at 95%, which is the best within the business and a key contributor to us having the business’s lowest carbon footprint.

I’m very excited to embark in this walk at Outokumpu. My message is considered one of perpetuity and self belief – Outokumpu has a robust foot, and there’s splendid doable forward. I stay up for operating with our staff, consumers, providers and alternative stakeholders to progress Outokumpu’s strategic walk.”

Outlook for This fall 2024

Team stainless-steel deliveries within the fourth quarter are anticipated to trim via 0–10% in comparison to the 3rd quarter, pushed via deteriorating markets for each trade fields Europe and Americas.

The deliberate upkeep fracture in Tornio, Finland is anticipated to have roughly EUR -10 million have an effect on on trade section Europe’s adjusted EBITDA.

Power prices for trade section Europe are anticipated to extend via roughly EUR 5 million.

With the stream uncooked materials costs, some uncooked material-related stock and steel by-product losses are forecasted to be discovered within the fourth quarter.

Steering for This fall 2024:

Adjusted EBITDA within the fourth quarter of 2024 is anticipated to be decrease in comparison to the 3rd quarter.

Effects

Q3 2024 in comparison to Q3 2023

Outokumpu’s gross sales within the 3rd quarter of 2024 reduced to EUR 1,518 million (EUR 1,531 million). General stainless-steel deliveries had been 2% upper. Deliveries in trade section Europe fairly reduced, past larger in trade section Americas.

Adjusted EBITDA within the 3rd quarter of 2024 larger to EUR 86 million (EUR 51 million). Profitability used to be supported via upper discovered costs for stainless-steel. Upper discovered costs in Europe had been in part offset via decrease discovered costs in Americas. The certain have an effect on from discovered costs used to be greater than offset via the detrimental uncooked materials affects as a result of tight scrap marketplace. Prices larger because of wage inflation and upkeep paintings, in part offset via decrease electrical energy and consumable costs. Profitability used to be supported via stepped forward outcome for trade section Ferrochrome. Uncooked material-related stock and steel by-product beneficial properties amounted to EUR 10 million (losses of EUR 27 million), pushed via a favorable steel hedging outcome.

EBIT amounted to EUR 32 million within the 3rd quarter of 2024 (EUR -45 million). EBIT within the comparability length features a lack of EUR 26 million connected to sale of the Lengthy Merchandise trade in Sweden and alternative pieces affecting comparison. ROCE for rolling 365 days used to be -7.1% (5.3%), principally because of weaker profitability and the numerous impairment reserving connected to the renegotiated sizzling rolling assurance in trade section Americas on the finish of 2023.

Web outcome larger to EUR 20 million within the 3rd quarter of 2024 (EUR -55 million) and income consistent with proportion amounted to EUR 0.05 (EUR -0.13). Web monetary bills within the 3rd quarter of 2024 amounted to EUR 11 million (EUR 15 million) and pastime bills remained solid at EUR 15 million (EUR 15 million).

Q3 2024 in comparison to Q2 2024

Outokumpu’s gross sales reduced to EUR 1,518 million within the 3rd quarter of 2024 (Q2/2024: EUR 1,540 million). General stainless-steel deliveries had been 2% decrease in comparison to the former quarter. In trade section Europe, stainless-steel deliveries remained solid past reduced in trade section Americas.

Outokumpu’s adjusted EBITDA larger to EUR 86 million within the 3rd quarter (Q2/2024: EUR 56 million). In the second one quarter, the have an effect on of the political clash on adjusted EBITDA used to be roughly EUR -30 million.

Discovered costs for stainless-steel remained solid in each Europe and Americas, and product combine in trade section Europe used to be fairly weaker. Profitability used to be supported via certain uncooked materials affects and stepped forward outcome for trade section Ferrochrome. Uncooked material-related stock and steel by-product beneficial properties amounted to EUR 10 million within the 3rd quarter (Q2/2024: losses of EUR 8 million), pushed via a favorable steel hedging outcome.

EBIT amounted to EUR 32 million within the 3rd quarter of 2024 (Q2/2024: EUR 1 million). ROCE for the rolling 365 days used to be -7.1% (Q2/2024: -8.7%). ROCE construction throughout the 3rd quarter used to be impacted via fairly stepped forward profitability. Each classes had been suffering from the numerous impairment reserving connected to the renegotiated sizzling rolling assurance in trade section Americas on the finish of 2023.

Web outcome within the 3rd quarter amounted to EUR 20 million (Q2/2024: EUR -5 million) and income consistent with proportion used to be EUR 0.05 (Q2/2024: EUR -0.01). Web monetary bills amounted to EUR 11 million (Q2/2024: EUR 9 million) and pastime bills to EUR 15 million (Q2/2024: EUR 16 million).

Q1–Q3/2024 in comparison to Q1–Q3/2023

All over January–September 2024, Outokumpu’s gross sales reduced to EUR 4,537 million (EUR 5,447 million). General stainless-steel deliveries had been 6% decrease in comparison to the former while, pushed via weaker marketplace and the political clash in Finland. Chrome steel deliveries reduced considerably in trade section Europe, past considerably expanding in trade section Americas.

Outokumpu’s adjusted EBITDA reduced to EUR 180 million in January–September 2024 (EUR 445 million). Profitability used to be negatively impacted via decrease discovered costs for stainless-steel in each Europe and Americas and the detrimental results as a result of tight scrap marketplace. Variable prices reduced, principally because of decrease power and consumable costs and extra environment friendly manufacturing, however the certain have an effect on used to be in part offset via larger mounted prices, principally in trade section Americas because of upper tolling rate.

The have an effect on of the political clash on adjusted EBITDA used to be roughly EUR -60 million within the first part of the while. Because of the political clash, the vast majority of Outokumpu’s stainless-steel and ferrochrome operations in Finland in addition to the Port of Tornio in Finland had been close indisposed for 4 weeks. The clash additionally not directly impacted the corporate’s operations in alternative nations throughout the disruption to interior materials flows in each Europe and the Americas.

Uncooked material-related stock and steel by-product losses amounted to EUR 2 million in January–September 2024 (losses of EUR 45 million).

EBIT amounted to EUR 14 million (EUR 214 million) in January–September 2024. EBIT within the comparability length features a lack of EUR 26 million connected to sale of the Lengthy Merchandise trade in Sweden and alternative pieces affecting comparison. ROCE for the rolling 365 days used to be -7.1% (5.3%), principally pushed via weaker profitability and the numerous impairment reserving connected to the renegotiated sizzling rolling assurance in trade section Americas on the finish of 2023.

Web outcome declined to EUR -8 million (EUR 131 million) in January–September 2024 and income consistent with proportion used to be EUR -0.02 (EUR 0.30). Web monetary bills amounted to EUR 30 million (EUR 31 million) and pastime bills to EUR 48 million (EUR 46 million).

A reside webcast and convention name nowadays, October 30, at 3.00pm EET

A reside webcast and convention name to analysts, buyers and representatives of media will probably be organized nowadays at 3.00 pm EET at https://outokumpu.videosync.fi/q3-2024/register hosted via President and CEO Kati ter Horst and CFO Marc-Simon Schaar.

To invite questions, please take part within the convention name via registering at https://palvelu.flik.fi/teleconference/?id=50049025. Nearest registration you are going to obtain telephone quantity and a convention ID to get right of entry to the convention name. If you want to ask a query, please dial *5 to your phone keypad to go into the queue.

All of the intervening time record fabrics, a hyperlink to the webcast and upcoming on its recording will probably be to be had at www.outokumpu.com/en/investors.

For more info:
Buyers: Linda Häkkilä, Head of Investor Family members, tel. +358 400 719 669

Media: Päivi Allenius, SVP – Communications and Logo, tel. +358 40 753 7374,

or 

Outokumpu media table, tel. +358 40 351 9840, email media(at) outokumpu.com
Outokumpu Company 

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https://news.cision.com/outokumpu-oyj/r/outokumpu-interim-report-january-september-2024—solid-third-quarter-adjusted-ebitda-driven-by-busi,c4058612

Refer to information are to be had for obtain:

SOURCE Outokumpu Oyj

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