Finland-based stainless steel producer Outokumpu has announced its financial results for the third quarter of the current year, registering a net loss of €27 million, compared to a net profit of €13 million in the same quarter of the previous year, while the company's sales in the given quarter this year increased by 4.4 percent year on year to €1.48 billion.
In the first nine months this year, Outokumpu recorded a net profit of €264 million compared to a net loss of €48 million recorded in the same period of 2016. In the same period, the company’s sales totaled €4.89 billion, up 17 percent year on year.
Outokumpu's stainless steel deliveries in the third quarter increased by 2.5 percent to 623,000 mt, while in the January-September period the company’s stainless steel deliveries rose 2.1 percent to 1.88 million mt, both year on year.
Outokumpu stated that the main realized risks in the third quarter were related to the decreased ferrochrome price and limited ferrochrome production due to the planned maintenance in July. Additionally, the tightening supply of graphite electrodes led to limited global availability of electrodes and sharp increases in their prices. This has, in turn, led to increase in stainless steel production costs. In late September, Outokumpu introduced a graphite electrode upcharge of €30/mt for all new contracts and spot-orders in Europe, the Middle East, Africa, Australia and Asia. Meanwhile, the graphite electrode upcharge of €30/mt will also continue in November.
According to the company’s statement, underlying stainless steel demand is expected to remain healthy in both Europe and the US in the fourth quarter. However, the typical seasonal slowdown in the US market is expected to have a negative impact on business area Americas’ deliveries in the fourth quarter. Business area Europe’s deliveries are expected to remain relatively flat compared to the third quarter.