Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter and the first half of the current year.
The company registered a net loss of €55 million in the third quarter, compared to a net loss of €19 million in the previous quarter and a net profit of €20 million in the same quarter of last year. In the given quarter, the company’s sales revenues decreased by 12.6 percent quarter on quarter and by 14.5 percent year on year to €1.29 billion. In the third quarter this year, the company’s adjusted EBITDA was €34 million.
In the January-September period, the company registered a net loss of €72 million compared to a net loss of €8 million in the same period of the previous year, while the company’s sales revenues in the first nine months this year declined by five percent year on year to €4.31 billion. In the given period, Outokumpu’s adjusted EBITDA was €150 million, compared to €180 million in the first nine months of 2024.
Outokumpu’s stainless steel deliveries in the third quarter this year dropped by 10.6 percent quarter on quarter and by 5.9 percent year on year to 432,000 mt, while in the first nine months this year the company’s stainless steel deliveries increased by one percent year on year to 1.38 million mt.
Kati ter Horst: Demand remains weak amid import pressure
Regarding the stainless steel market, Kati ter Horst, CEO of Outokumpu has stated that the underlying demand for stainless steel continues to be subdued due to low investment and manufacturing activity as well as weak consumer confidence. Furthermore, the European stainless steel market has been burdened by the high volumes of low-priced Asian imports for some time. Horst expressed her gratitude with the European Commission’s decision to enhance the competitive position of the industry in its home market by proposing the implementation of more effective safeguards as part of the Steel and Metals Action Plan. Outokumpu wishes for a level playing field for the European steel industry and will support the continuation of the green transition in Europe.
The company stated that its stainless steel deliveries in the fourth quarter are expected to decrease by 5-15 percent compared to the third quarter, mainly due to continued market weakness in business area Europe and seasonal slowdown in business area Americas.
$45 million ferrochrome investment in the US
On the other hand, Outokumpu unveiled an investment of approximately $45 million in a new pilot enriched ferrochrome and chromium metal plant in New Hampshire, US, planned to be operational in the first half of 2027. Following the successful completion of the pilot phase, Outokumpu plans to construct the first industrial-scale plant, with an anticipated annual production capacity of approximately 10,000 mt. The target timeline for the industrial plant to be operational is 2029-2030, and Outokumpu expects to unlock the full commercial potential of the innovative proprietary technology from 2030 onwards.