Finland-based stainless steel producer Outokumpu has announced its financial results for the first half of the current year, registering a net loss of €15 million compared to a net loss of €33 million in the same period of the previous year, while the company's sales in the first half this year fell by 11.1 percent year on year to €3.03 billion.
In the given period, Outokumpu’s adjusted EBITDA was €151 million, compared to €145 million in the first half of 2019. The company stated that higher nickel prices and positive raw material impacts supported profitability, while the lower ferrochrome benchmark price had a negative impact on results compared to the first half of 2019.
Outokumpu's stainless steel deliveries in the first half this year declined by 7.5 percent year on year to 1.11 million mt.
The company stated that they will not announce adjusted EBITDA guidance for the third quarter of this year due to the global economic uncertainty caused by the coronavirus pandemic. However, Outokumpu expects the stainless steel industry to be significantly affected by the preventative measures and lockdowns related to the coronavirus pandemic during 2020. The company’s stainless steel deliveries are expected to show a decrease in all business areas by 10 percent in the third quarter compared to the second quarter of the year, due to seasonally low quarter, especially in Europe, and the continuing Covid-19 situation.
“Despite some signs of gradual market recovery, the operating environment continues to be difficult. The normal third quarter seasonality will prevail, now further challenged by Covid-19. Therefore, our short-term focus will be on cash generation, securing liquidity and tight cost control,” said Heikki Malinen, Outokumpu’s CEO.