Outokumpu Q3 earnings slip on high nickel price, decreased deliveries

Finnish stainless steelmaker Outokumpu has reported a “challenging quarter” and a drop in earnings for the period July-September 2019, due to a weak market and a sharp increase in the price of nickel, the company said in its quarterly results statement.

Earnings before interest, taxes, depreciation and amortization (Ebitda) were €45 million ($50 million) in the third quarter of the year, down from €128 million in the corresponding months of 2018. The weak stainless steel market has led to significantly lower base prices. This caused Outokumpu’s sales to fall to €1.59 billion in the third quarter of 2019, down from €1.73 billion in July-September 2018. The main reason for the fall in profitability, the company said, was an 8% drop in stainless steel deliveries as a result of the poor market in Europe and “significantly” lower base prices, as well as raw material-related inventory and metal derivative losses of €31 million...

Published

Carrie Bone

November 05, 2019

15:02 GMT

London