OUTOKUMPU OYJ 
Outokumpu's third quarter 2012 - Continued positive cash flow but unsatisfactory profitability in a challenging environment
OUTOKUMPU OYJ
INTERIM REPORT
24 October 2012 at 9.00 am EET
Third-quarter 2012 highlights
- Underlying operational result was EUR -57 million
- Operating loss was EUR 89 million including raw
material-related inventory losses of some EUR 18 million and
net non-recurring items totalling EUR -14 million
- Operating loss excluding non-recurring items was EUR
75 million
- Positive operating cash flow of EUR 83 million
- Total external deliveries at 325 000 tonnes
- Outokumpu maintained its membership in the World Dow
Jones Sustainability Index (DJSI) for the sixth consecutive
year
- Ferrochrome expansion project to be finalised ahead of
schedule and below budget
- In connection with the Inoxum transaction, Outokumpu
submitted a binding remedy commitment in October to ensure
the approval of the transaction. Despite the remedy
commitment, the company expects to achieve annual synergy
savings of approximately EUR 200 million.
| Group key figures | ||||||||||||||||||||||||||||||||||||||
| III/12 | II/12 | III/11 | 2011 | |||||||||||||||||||||||||||||||||||
| Sales | EUR million | 974 | 1 254 | 1 231 | 5 009 | |||||||||||||||||||||||||||||||||
| EBITDA | EUR million | -32 | -12 | 4 | 80 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA 1) | EUR million | 0 | 19 | 42 | 169 | |||||||||||||||||||||||||||||||||
| Operating result | EUR million | -89 | -80 | -53 | -260 | |||||||||||||||||||||||||||||||||
| excluding non-recurring items | EUR million | -75 | -47 | -53 | -109 | |||||||||||||||||||||||||||||||||
| underlying operational result 2) | EUR million | -57 | -39 | -15 | -66 | |||||||||||||||||||||||||||||||||
| Result before taxes | EUR million | -132 | -130 | -157 | -253 | |||||||||||||||||||||||||||||||||
| excluding non-recurring items | EUR million | -117 | -97 | -157 | -318 | |||||||||||||||||||||||||||||||||
| Net result for the period | EUR million | -116 | -122 | -135 | -186 | |||||||||||||||||||||||||||||||||
| excluding non-recurring items | EUR million | -101 | -89 | -135 | -244 | |||||||||||||||||||||||||||||||||
| Earnings per share 3) | EUR | -0,08 | -0,09 | -0,48 | -0,64 | |||||||||||||||||||||||||||||||||
| excluding non-recurring items 3) | EUR | -0,07 | -0,06 | -0,48 | -0,85 | |||||||||||||||||||||||||||||||||
| Return on capital employed | % | -9,8 | -8,6 | -5,3 | -6,5 | |||||||||||||||||||||||||||||||||
| excluding non-recurring items | % | -8,2 | -5,0 | -5,3 | -2,7 | |||||||||||||||||||||||||||||||||
| Net cash generated from operating activities | EUR million | 83 | 23 | 282 | 338 | |||||||||||||||||||||||||||||||||
| Capital expenditure | EUR million | 98 | 93 | 67 | 255 | |||||||||||||||||||||||||||||||||
| Net interest-bearing debt at the end of period 4) | EUR million | 1 714 | 1 691 | 1 730 | 1 720 | |||||||||||||||||||||||||||||||||
| Debt-to-equity ratio at the end of period 4) | % | 90,8 | 84,8 | 79,7 | 82,5 | |||||||||||||||||||||||||||||||||
| External deliveries | 1 000 tonnes | 325 | 402 | 355 | 1 449 | |||||||||||||||||||||||||||||||||
| Stainless steel external deliveries | 1 000 tonnes | 311 | 380 | 340 | 1 391 | |||||||||||||||||||||||||||||||||
| Stainless steel base price 5) | EUR/tonne | 1 155 | 1 182 | 1 150 | 1 181 | |||||||||||||||||||||||||||||||||
| Personnel at the end of period | 7 366 | 8 453 | 8 421 | 8 253 | ||||||||||||||||||||||||||||||||||
| 1) EBITDA excluding raw material-related inventory gains/losses and non-recurring items, unaudited. | ||||||||||||||||||||||||||||||||||||||
| 2) Operating result excluding raw material-related inventory gains/losses and non-recurring items, unaudited. | ||||||||||||||||||||||||||||||||||||||
| 3) Calculated based on the rights-issue-adjusted weighted average number of shares. Comparative figures adjusted accordingly. | ||||||||||||||||||||||||||||||||||||||
| 4) 30 September 2012 and 30 June 2012 adjusted to exclude the effect of the rights issue. Debt-to-equity ratio, including the effect of the | ||||||||||||||||||||||||||||||||||||||
| rights issue, on 30 September 2012 is 25.9% (30 June 2012: 24.1%). | ||||||||||||||||||||||||||||||||||||||
| 5) Stainless steel: CRU - German base price (2 mm cold rolled 304 sheet). | ||||||||||||||||||||||||||||||||||||||
| Raw material-related inventory gains or losses | ||||||||||||||||||||||||||||||||||||||
|
The realised timing gain or loss per tonne of
stainless steel is estimated based on the difference
between the purchase price and invoice price of each
metal in EUR per tonne times the average metal content in
stainless steel. The unrealised timing impact consists of
the change in net realisable value
Share
© Publicnow - 2012
Outokumpu Oyj is one of the world's leading manufacturers of stainless steels. Net sales break down by activity as follows:
- sales of generic steel products (95.3%): rolled products, plates, flat steels, etc. The group also develops ferrochrome production activity. Net sales break down by geographical area between Europe (71.6%) and America (28.4%);
- ferrochrome production (3%);
- other (1.7%): primarily holdings in industrial groups.
Net sales are distributed geographically as follows: Finland (3.5%), Europe (61.2%), North America (28.7%), Asia/Pacific (5.3%) and other (1.3%).
Sector
Iron & Steel
Calendar
2024-05-07
- Q1 2024 Earnings Release
Trading Rating
Investor Rating
ESG Refinitiv
A- Sell  Mean consensus OUTPERFORM Number of Analysts 10 Last Close Price
3.822
EUR Average target price
4.71
EUR Spread / Average Target +23.23% EPS Revisions
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