Finland-based stainless steel producer Outokumpu has announced its financial results for 2012, reporting a net loss of €535 million compared to a net loss of €180 million in 2011 due to the ongoing challenging market environment.
In 2012, Outokumpu recorded an operating loss of €385 million compared to an operating loss of €251 million in 2011. Group sales in the full year of 2012 decreased by 9.4 percent year on year to €4.54 billion. In 2012, the company registered a negative EBITDA of €50 million compared to EBITDA of €89 million in 2011. In 2012, the company’s capital expenditures excluding expenses linked to the Inoxum acquisition totaled €356 million, compared to €255 million in 2011.
In the fourth quarter alone, Outokumpu registered an operating loss of €220 million compared to a loss of €89 million in the third quarter. In the fourth quarter Outokumpu saw a net loss of €309 million. Group sales in the given quarter increased by three percent quarter on quarter to €1 billion. In the fourth quarter, the company posted a loss before interest, taxes, depreciation and amortization of €67 million, compared to a loss of €32 million in the third quarter.
Meanwhile, in the fourth quarter the company’s capital expenditures excluding expenses linked to the Inoxum totaled €86 million. In 2013, the company’s capital expenditures are expected to decline to approximately €350 million.
Outokumpu's deliveries in the fourth quarter increased to 337,000 mt from 311,000 mt in the third quarter. In 2012, stainless steel deliveries increased by 37,000 mt year on year to 1,428,000 mt.
In the first quarter of 2013, Outokumpu’s stainless steel delivery volumes are expected to be in the range of 680,000-750,000 mt. Stainless steel prices are expected to remain at the same level or slightly higher than in the fourth quarter of 2012, but to remain below the levels achieved in the first quarter of 2012. In January this year, Outokumpu introduced price increases which are expected to take effect towards the end of the first quarter.
According to Outokumpu’s statement, the closing of the Inoxum transaction, which was the highlight for the company in 2012, will be the starting point for the company's turnaround.