On July 20, Finland-based stainless steel producer Outokumpu announced second quarter results. In the second quarter of 2011, the company reported €169 million operating loss compared to the profit of €72 million achieved in the same quarter of 2010.
The main reason for the loss of the company being more than expected is the restructuring costs worth €138 million. On the other hand, raw material-related inventory losses of €26 million also contributed to total operating loss.
Outokumpu's second quarter results were affected by the customers halting major projects and third quarter operating income is also expected to be negatively affected since the customers are destocking due to declining nickel prices, according to the company statement.
Outokumpu's deliveries in second-quarter decreased to 348,000 mt compared to the previous quarter, but up 3 percent year-on-year. In the third quarter, the company forecasts lower delivery volumes than in the second quarter, following the lower demand due to holiday season.