Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter of the current year, reporting a net profit of €109 million, compared to a net loss of €20 million in the same quarter of the previous year, while the company's sales in the given quarter increased by 20.3 percent year on year to €1.65 billion. In the second quarter, Outokumpu’s adjusted EBITDA totaled €199 million, rising from an adjusted EBITDA of €66 million recorded in the same quarter of 2016, positively impacted by the robust market environment with significantly higher ferrochrome prices and by higher base prices in both Europe and the Americas. However, the second-quarter positive performance was negatively impacted by low ferrochrome production due to the maintenance of the damaged ferrochrome furnace of the company.
Outokumpu's stainless steel deliveries in the second quarter this year decreased slightly by 0.6 percent year on year to 625,000 mt.
Outokumpu stated that the low delivery volumes are expected to have a significant negative impact on its third-quarter earnings. Meanwhile, the maintenance of the damaged ferrochrome furnace has been completed and the furnace is currently being ramped up. The furnace is expected to return to normal operations during the third quarter.
According to Outokumpu, underlying stainless steel demand is expected to remain healthy in both Europe and the US. In the third quarter, typical seasonal slowdown is forecasted to have a negative impact on apparent stainless steel consumption. Consequently, the company expects the stainless steel deliveries of its business area Europe and Long Products divisions to decrease in the third quarter, whereas in the Americas deliveries are expected to remain relatively flat compared to the second quarter.