Finland based stainless steel producer Outokumpu has announced that it has lowered its financial guidance for the third quarter of 2015.
The company said that the negative change is mostly driven by weaker-than-expected stainless steel deliveries and very low nickel prices resulting in further pressure on base prices, scrap costs, and order intake. In both key markets, Europe and the US, destocking continues and distributors continue to hold back orders. Due to the seasonally subdued markets and the earlier production challenges in Tornio, delivery volumes have been lower than forecasted, especially in the Coil EMEA (Europe, Middle East and Africa) segment. Furthermore, the Tornio operations were shut down for 24 hours during a nationwide, political demonstration in Finland on September 18, causing a further negative impact on the profitability of the Coil EMEA segment.
Outokumpu’s ongoing savings programs as well as the special turnaround measures in the Coil Americas business area continue as planned.