Finnish mining and metal manufacturing equipment provider Outotec has issued its financial results for the second quarter and the first half of the current year.
In the second quarter, Outotec reported a net loss of €2.5 million, compared to the net profit of €4 million in the same quarter of 2015, due to restructuring costs. The company's sales revenues in the second quarter decreased by 14 percent year on year to €267.6 million. Meanwhile, Outotec's order intake was €280.7 million in the given quarter, down 28.8 percent year on year.
In the first half, Outotec registered a net loss of €14 million compared to the net profit of €4.7 million in the first half of the previous year, while the company's sales revenues totaled €507.4 million, down 13.5 percent year on year. During the given period, Outotec's order intake amounted to €450.9 million, falling by 31 percent year on year.
According to Outotec, uncertainty in the mining and metals industry remains high. The continued uncertainty of China’s growth outlook, weakened metals prices, weakening of emerging market economies, and lack of financing cause customers to postpone investments or service purchases. In some cases, existing projects may be put on hold or cancelled. There is also an increased risk of credit losses, considering the industry’s challenges.