Change time

Outokumpu profit drops

The Finnish company Outokumpu's — the world's largest stainless steel producer — has significantly reduced profitability. According to the financial statements of the organization for the first quarter of this year, net profit of Outokumpu was 12 million euros, 25% less than in the same period of 2011, when this same figure was 16 million. In this case, the total volume of the structure of revenues decreased not so much — only 5% (from 1.37 billion euros in the first three months of last year to 1.3 billion in the first quarter of 2012.). In addition, the company's press release says on increasing volumes of stainless metal shipments at the beginning of this year (when compared to sales volumes in the 4th quarter of 2011).

In the second quarter, analysts expect Outokumpu operational results at breakeven or a slight negative indicators. Representatives of the Finnish campaign attributed this situation to the acquisition of Inoxum (former asset ThyssenKrupp, which specializes in production of stainless steel).

Outokumpu plans to management in the short term — the optimization of the company's articles of expenses, and this program provides a number of organizational measures. «We have made significant progress in many important strategic areas in the first quarter. And I am sure that we are in a good strategic position to take your business to solid positive results in the near future «- commented on his views on the future CEO of Outokumpu Mika Seytovirta.

See all news