Finland-based stainless steel producer Outokumpu has announced its financial results for 2011, reporting an operating loss of €260 million compared to a loss of €83 million in 2010.
According to Outokumpu's statement, the operating loss registered in 2011 included raw material-related inventory losses of €43 million. In 2011, demand for stainless steel begin to improve and the group's sales increased by 18 percent year on year.
In the fourth quarter alone, Outokumpu registered an operating loss of €71 million, including raw material-related inventory losses of €24 million. Group sales in the given quarter decreased by nine percent quarter on quarter to €1.12 billion.
Outokumpu's deliveries in the fourth quarter decreased to 323,000 mt. In the given period, capacity utilization was at 70-75 percent. In 2011, stainless steel deliveries increased by six percent compared to 2010, while the capacity utilization was 75-80 percent.
For the first quarter of 2012, the company forecasts delivery volumes to increase based on the current levels of order intake.
Outokumpu also announced that its board of directors and the supervisory board of ThyssenKrupp have approved the proposed merger of Outokumpu with German-based ThyssenKrupp's stainless steel business Inoxum. The new company will operate under the name of Outokumpu, listed on the NASDAQ Helsinki Stock Exchange.