Outokumpu reports lower financial results for 2003

Outokumpu reports lower financial results for 2003

Outokumpu Group headquartered in Finland, reported its financial results for 2003, adding that the decline compared to 2002 results is due to slow economic growth worldwide and tough market conditions. In general, weak US Dollar against Euro affected results of the group overall as well. According to financial figures, company recorded an operating profit of €206 million for financial year 2003, indicating a €59 million decrease from previous year. The remarkable decrease in operating profit is attributed to low base prices in Europe coupled with weakening of Dollar against Euro. Besides bulk of deliveries were headed to Asia, where prices are lower than in Europe. Increase in fixed costs due to expansion of steelmaking and rolling capacity in Tornio, and a €18 million fine from European Commission to the Outokumpu Copper had a vitiating effect on operating profit. Outokumpu's net sales reportedly surged by 7% up to €5.9 million in 2003, despite weakening Dollar which was affecting net sales negatively. This figure was recorded as €5.5 million previous year. It is believed that together with higher raw material prices especially the increase in delivery volumes of stainless steel products and hot rolled coil gave way to the slight increase in sales. In the meantime, group's sales to Europe and Americas fell down to 62% and 18% respectively, whereas to Asia grew up to 17%.