Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter of this year, reporting an operating loss of €80 million compared to a profit of €3 million recorded in the previous quarter and a loss of €169 million recorded in the same quarter of 2011.
The company's net loss for the April-June period was €122 million, compared to the net profit of €12 million in the first quarter and the net profit of €50 million in the same period last year. Meanwhile, Outokumpu's sales came to €1.25 billion in the given quarter, down 3.8 percent compared to the previous quarter and 2.1 percent year on year.
Outokumpu's deliveries in the second quarter increased 10.1 percent compared to the corresponding quarter of the previous year to 402,000 mt. The third quarter delivery volumes are expected to be lower.
According to Outokumpu's statement, demand for stainless steel slowed during the second quarter. Economic uncertainty in Europe, declining nickel prices and consequent destocking by distributors had a negative impact on the company's second quarter results.
Regarding the third quarter outlook, Outokumpu expects average base prices to be slightly lower compared to the second quarter, mainly impacted by normal seasonality. The production cost increase in the second quarter is expected to be partly reversed in the third quarter.