In the second quarter of this year Finland-based stainless steel producer Outokumpu returned to profit after seven consecutive loss-making quarters with a net profit of €44 million, compared to a net loss of €21 million in the first quarter of 2010 and up from a net loss of €87 million recorded in the second quarter of 2009.
In the second quarter of the current year, the company's sales amounted to €1.11 billion, up 21.18 percent compared to the previous quarter and up 79.9 percent year on year, while its EBITDA rose 3.77 times as compared to the first quarter, reaching €128 million, up from -€42 million in Q2 2009.
Outokumpu's deliveries of stainless steel increased by 26 percent to 339,000 metric tons in the second quarter compared to the same quarter in 2009. Base prices improved by 18 percent, while transaction prices, which also include raw material costs, were as much as 72 percent higher than a year ago. Out of the raw material prices, the average nickel price was 74 percent higher and ferrochrome 97 percent higher than in 2009.
Compared to the first quarter of 2010, Outokumpu's second quarter deliveries were at about the same level and the group's capacity utilization remained around 75 percent.
Outokumpu said that the slowdown in demand during the holiday season and annual maintenance breaks at the group's mills will result in stainless delivery volumes for the third quarter being 10-20 percent lower than in the second quarter. The underlying operational result in the third quarter is expected to be somewhat negative.