Finland-based stainless steel producer Outokumpu has announced its financial results for the third quarter of this year, stating that seasonally lower demand resulted in a loss-making quarter. In the second quarter, the company had returned to profit after seven consecutive loss-making quarters.
Outokumpu closed the quarter with a net loss of €56 million, compared to a net profit of €44 million in the second quarter of 2010 and a net loss of €56 million recorded in the third quarter of 2009. In the third quarter of the current year, the company's sales amounted to €999 million, up 70 percent year on year.
Outokumpu's deliveries increased by 29 percent to 307,000 mt in the third quarter compared to the same quarter in 2009. Average base prices were five percent lower than one year earlier.
Commenting on the results, CEO Juha Rantanen said, "Outokumpu's third quarter loss is mainly a result of the seasonal decline in delivery volumes. We'll get back on the improving profit trend as we foresee better results in the fourth quarter compared to the third quarter this year and the fourth quarter a year ago. Underlying demand for standard grades continues to be satisfactory while the expected recovery in demand from investment-driven industries has not materialized yet. Customers are hesitant to make investment decisions due to overall macroeconomic uncertainty. This is the main reason why we are still operating at only 75 percent of our capacity. The recent currency fluctuations are also having a negative impact on our performance and overall market sentiment."