Finland-based stainless steel producer Outokumpu has announced its financial results for 2017, registering a net profit of €392 million, compared to a net profit of €144 million in the previous year, while the company's sales in 2017 increased by 12 percent year on year to €6.36 billion, mainly a result of higher alloy surcharges and average base prices in both Europe and the Americas.
The company's profitability in 2017 improved significantly, with adjusted EBITDA more than doubling year on year to €631 million, primarily as a result of higher ferrochrome and base prices, as well as improved cost efficiency.
Outokumpu's stainless steel deliveries in 2017 remained almost stable year on year to 2.44 million mt. In the given year, the company’s stainless steel deliveries increased clearly in business area Americas and the Long Products division but decreased in business area Europe.
The company stated that, driven by healthy underlying stainless steel demand both in Europe and the US as well as a seasonally strong market, it expects higher stainless steel deliveries in the first quarter compared to the fourth quarter of 2017. However, increased graphite electrode, ferrosilicon and energy costs, as well as weakening US dollar and lower ferrochrome price are expected to have a significant negative impact on profitability.
Outokumpu expects its first-quarter adjusted EBITDA to be higher compared to the fourth quarter of the previous year (€82 million).