Outokumpu announces second quarter results

The strike in the first quarter decreased adjusted EBITDA by approximately EUR 60 million. However, the company's adjusted EBITDA recovered significantly compared to the first quarter of 2024, reaching EUR 56 million. This improvement was made possible by the normalization of operations following the difficulties caused by the prolonged strike in Finland.

Stainless steel deliveries increased by 5% to 468,000 tons in the second quarter compared to the previous period. However, the tight scrap market negatively impacted profitability despite lower end product demand. The company did not face any raw material supply challenges and was successful in sourcing.

In the Europe region, adjusted EBITDA increased to EUR 28 million, reflecting the gradual improvement in the market and increased profitability. Europe's challenging economic environment is shaped by structural obstacles such as the war in Ukraine, financing of the green transition and increasing globalization. The company is making serious efforts to improve cost competitiveness and optimize production processes. With the goal of increasing efficiency in stainless steel production in Finland and Germany prioritizing cost savings.

In the first half of 2024, total stainless steel deliveries amounted to 912,000 tons. This represents a decrease of 10% compared to the same period of the previous year. Adjusted EBITDA was EUR 94 million, a decrease after a strong performance in the first quarter.

The company's outlook for the third quarter is for stainless steel deliveries to remain stable and the market recovery in Europe to continue slowly. Market conditions in the Americas business region are expected to remain more moderate. The scrap market is expected to remain tight, while inventory and metal derivatives are likely to increase in light of current raw material prices.

Overall, Outokumpu's second quarter performance delivered a significant profitability improvement despite challenging conditions. The company aims to deliver a stronger performance in the future by improving cost management and production efficiency in a tough competitive environment in Europe.