Finland-based stainless steel producer Outokumpu has announced its financial results for the first quarter of the current year, registering a net profit of €49 million compared to a net profit of €182 million in the same quarter of the previous year, while the company's sales in the first quarter this year decreased by 4.8 percent year on year to €1.67 billion.
In the given quarter, the company’s adjusted EBITDA was €133 million, compared to €294 million in the first quarter of 2017. The company stated that profitability declined primarily due to the lower ferrochrome price and lower realized base prices in both Europe and the Americas. In addition, higher graphite electrode and other input costs amounting to approximately €20 million had a negative impact on profitability.
Outokumpu's stainless steel deliveries in the first quarter this year rose slightly by 0.7 percent year on year to 644,000 mt.
According to Outokumpu’s statement, in the second quarter of this year underlying stainless steel demand is expected to remain healthy. The benefits from the higher ferrochrome price will be partly offset by a planned maintenance shutdown of one ferrochrome furnace of the company. In addition, in the second quarter, stainless steel deliveries are expected to be relatively flat compared to the first quarter in all business areas. The company expects its second quarter adjusted EBITDA to be at a similar level to the first quarter.
Additionally, the recent ASME Code Case 2903 approval of Outokumpu’s innovative Supra 316plus products will give the firm the opportunity to grow in the pressure vessels tank container and road tankers markets in Asia and Americas. The high-chromium austenitic grade of stainless steel dupped Supra 316plus was introduced in 2013. “Meeting the criteria for ASME Section VIII Code Case 2903 approval for flat products is a great milestone, as it completes material availability for pressure vessels worldwide,” said Outokumpu Product Manager Juha Kela in a press release.
Adaptable for use in tubular products, Supra 316plus is a candidate for further standardizations. Outokumpu is pursuing approvals for the grade in ASME tube and pipe and further EN standardizations.