Outokumpu earnings surge 87% in 2016 on cost reductions

Finnish stainless steel producer Outokumpu recorded an 87.27% year-on-year rise in earnings after a “significant reduction of costs” in 2016, it said on Thursday February 2.

Its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda), excluding non-recurring items, rose to €309 million ($333.12 million) in 2016, up sharply from €165 million ($177.88 million) in 2015.
The company’s fourth-quarter adjusted Ebitda more than tripled to €98 million ($105.65 million), from €21 million ($22.64 million) in the corresponding quarter in 2015.
In November, Outokumpu permanently closed 1.40 million tpy of its European stainless steel meltshop capacity, as well as 250,000 tpy of cold rolling capacity, as part of a restructuring and efficiency drive.
Underlying earnings before interest and taxes (Ebit) were €45 million ($48.51 million) in 2016 – the company’s first positive Ebit figure in eight years. This was up from a negative €101 million ($108.88 million) in 2015.

“We have now returned the company to profitability, but we are still far from...

Published

Viral Shah

February 02, 2017

18:07 GMT

London