Finland-based stainless steelmaker Outokumpu has announced that it expects to register an operational loss of €40 million for the second quarter of the current year.
In the guidance given in the first quarter results, the company forecast the second quarter operational result to be around break-even or slightly negative. However, the economic uncertainty in Europe, the decline in the nickel price and destocking among distributors in the second quarter generated weaker than anticipated operational results. Additionally, somewhat increased production costs have had a negative impact on profitability.
In the given quarter, the company's total loss will be €80 million including raw material-related inventory losses and non-recurring items. Non-recurring items in the second quarter include the costs from the merger with German steel giant ThyssenKrupp's stainless unit Inoxum and impairments from the divestment of stock locations.