Outokumpu Reports Strong First Half Operating Results

Outokumpu's semi-annual operating results reported satisfactory second quarter results and Group Adjusted EBITDA of € 91 million.

Roland Baan, President and CEO, said he was particularly pleased with the commercial and operational performance of the business in Europe - “our product portfolio has been strong and we have maintained our market share. In addition, our ongoing self-help measures, including cost reduction and individual development activities have yielded tangible results. Our continued focus on working capital has resulted in strong operating cash flow and our net debt has dropped to € 1.3 billion. "

The stainless steel market remains challenging. In Europe, the company is still struggling with cheap imports from Asia, despite permanent guarantees that took effect in February. Import penetration has returned by 30% and the start of a new quota period from July 1 has already resulted in a further jump in imports. The steel industry is in constant dialogue with the European Commission to improve the effectiveness of guarantees. Conversely, imports in the US remained relatively low, however due to the continuing decline in the distributor's inventory, we do not see significant volume growth in the short term in America.

The steel industry is in constant dialogue with the European Commission to improve the effectiveness of guarantees. Conversely, imports in the US remained relatively low, however, due to the continuing reduction in distributor inventories, there is no significant increase in volumes in the short term in America.

The outlook for the third quarter of 2019 says the stainless steel market will be challenging in the third quarter. In addition to the typical seasonal slowdown in Europe, core stainless steel demand is expected to be further burdened by strong imports from Asia and weakness in certain consumer segments. Consequently, Outokumpu expects stainless steel shipments in Europe in the third quarter to be lower than in the second quarter. In the Americas, shipments are expected to remain stable.