Outotec sees €19 million profit in Q1, expects strong raw material demand

On April 29, Finnish mining and metal manufacturing equipment provider Outotec issued its financial results for the first quarter of 2011, stating that its sales and profitability developed very strongly due to strong demand and order book across solutions, process equipment and services.
 
According to the financial results, the operating profit of Outotec was €19 million in the first quarter of 2011, compared with an operating loss of €10.1 million in the first quarter of 2010, while its sales revenues in the period in question rose 32.35 percent year on year to €247.5 million. The company's order intake was €343.7 million in the first quarter of 2011, declining by 18 percent compared to Q1 2010.
 
Regarding the market outlook, Outotec said that the demand for raw materials used in steelmaking, iron ore and coking coal is expected to remain high and that the demand for stainless steel raw materials shows strong growth, while activity in ferroalloy projects is continuously strengthening. Brazil, India and South Africa continue to rapidly develop their infrastructure and to utilize their large natural resource base, the company stated. There are several iron ore processing plant expansions and new investments under development particularly in Brazil and India, catering mainly for the Chinese market where concentrates and pellets are in continuous demand.
 
"In the future, unconventional techniques, such as the direct reduction of iron ore, offer more and more opportunities to use lower grade raw material resources as well as optimized energy production and the reduction of CO2 emissions," the Outotec statement reads.