Finnish mining and metal manufacturing equipment provider Outotec has issued its financial results for the first quarter of the current year.
In the first quarter, Outotec reported a net loss of €11.5 million, compared to a net profit of €700,000 in the same quarter of the previous year. The company's sales revenues decreased by 13.6 percent year on year to €239.8 million, mainly due to the timing of plant and equipment orders in 2015 and customer-driven postponements in project deliveries. Meanwhile, Outotec's order intake was €170.2 million in the given quarter, down 34.5 percent year on year, mainly due to lack of large plant and equipment orders, especially in the Metals, Energy & Water (MEW) segment.
In the given quarter, the company achieved cost savings of €8 million, corresponding to €32 million annual savings.
Outotec stated that the current market conditions and long-term metals price outlook is not supportive for investments, as the long-term consensus prices are still below investment incentive prices. According to Outotec, most mining and metals analysts are forecasting lower investment levels for this year compared to 2015.