Finland-based stainless steel producer Outokumpu has announced its financial results for the fourth quarter of last year, stating that it recorded a net loss due to lower European stainless demand compared to the pre-crisis levels, especially for investment-driven applications.
Outokumpu closed the quarter with a net loss of €91 million, compared to a net loss of €56 million in the third quarter of 2010 and a net loss of €6 million in the fourth quarter of 2009. In the fourth quarter of 2010, Outokumpu's sales amounted to €1.16 billion, up from €1.01 billion in the previous quarter and €736 million in the fourth quarter of 2009.
Outokumpu's deliveries were 336,000 mt in the quarter in question, compared to 307,000 mt in the previous quarter and 277,000 mt in the same quarter of 2009. The average base price was €1,213/mt, down from €1,245/mt in the previous quarter and from €1,297/mt in the same quarter of the previous year.
Meanwhile, Outokumpu closed 2010 with a net loss of €124 million, compared to a net loss of €336 million in 2009. In 2010, the company's sales amounted to €4.23 billion, up from €2.64 billion in the year before.
Outokumpu's deliveries were 1.32 million mt in 2010, compared to 1.03 million mt in 2009. Its average base price in 2010 was €1,252/mt, up from €1,161/mt in 2009.
Commenting on the results, CEO Juha Rantanen said, "The market environment in 2010 continued to be difficult in our home market, Europe. The resulting still rather low capacity utilization and deteriorated cost-efficiency were the main reasons for the clearly loss-making result in 2010. Currently, the overall economic development indicates better stainless markets for this year."