Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter of the current year, reporting a net profit of €25 million, compared to a net profit of €109 million in the same quarter of the previous year, while the company's sales in the given quarter increased by 13.6 percent year on year to €1.88 billion. In the second quarter, Outokumpu’s adjusted EBITDA totaled €136 million, falling from an adjusted EBITDA of €199 million recorded in the same quarter of 2017. According to the company, lower European base prices, higher input costs and steep increases in the cost of truck freight in the Americas led to decreased profitability.
Outokumpu's stainless steel deliveries in the second quarter this year increased by 6.8 percent year on year to 668,000 mt.
Outokumpu stated that, in line with the market, third-quarter stainless steel deliveries are expected to be seasonally lower in business area Europe and to remain stable in the Americas. Base price pressure continues in Europe but the negative impact of this is partly offset by higher base prices in the US supported by steel import tariffs.
Meanwhile, Outokumpu expects its third quarter adjusted EBITDA to be lower than in the second quarter but significantly higher than in the third quarter of 2017.