Economic|Interim reports
Outokumpu’s result rose strongly from last year’s loss to a profit.
Outokumpu net sales and operating profit increased clearly in the third quarter. Net sales were EUR 1,949 million, compared to EUR 1,254 million a year ago.
Adjusted operating profit was EUR 234 million, compared to a loss of EUR 39 million in July – September a year ago. Operating profit was 12 percent of net sales.
Outokumpu Already reported in mid – October, its adjusted EBITDA was better in the third quarter than in the second quarter. The improvement in EBITDA is due to higher steel prices.
EBITDA is the operating result before depreciation, financial items and taxes.
The company however, the volume of steel sold did not increase from the previous estimate, and steel deliveries were 8% lower than in the second quarter. Compared to the corresponding period last year, steel deliveries increased.
Demand fluctuates seasonally and is generally weaker towards the autumn as construction slows down than in the spring and summer.
Outokumpu estimates that steel deliveries will be at the level of the third quarter towards the end of the year. However, EBITDA is still improving due to rising prices.
The price of steel has risen so much that profitability is improving, although the prices of inputs and transport have also risen sharply.
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