The market has recovered from the korona. The company is pleased with the extension of EU safeguard duties.
Stainless Steel manufacturer Outokumpu’s adjusted operating profit rose to EUR 163 million in April-June. A year ago, the company made a loss of 16 million euros.
According to the company, stainless steel prices rose in both Europe and the Americas. Steel deliveries rose 20 percent year-on-year, with demand weighed on by the global corona pandemic.
“The stainless steel market has recovered from the global coronavirus pandemic in several industries,” says the CEO Heikki Malinen in the bulletin.
According to him, all business areas improved their results from the previous quarter. The favorable market situation supported profitability in Europe, and in the Americas the upward trend continued in a strong market situation.
Malinen says Outokumpu is pleased that the EU will continue to protect stainless steel for another three years until June 2024. In addition, the EU imposed provisional anti-dumping duties on imports of cold-rolled steel from Indonesia and India.
“Such safeguards are an important step in ensuring a level playing field for sustainably produced stainless steel in Europe,” Malinen emphasizes.
Outokumpu organized a directed share issue in May to speed up balance sheet consolidation and reduce debt.
“With the proceeds of the share issue, we repaid our more expensive loans by EUR 210 million, which reduces our interest expenses by EUR 18 million annually,” says Malinen.
According to him, Outokumpu is on schedule to achieve an improvement in EBITDA of EUR 200 million by the end of next year.