Finnish steel company Outokumpu's results for the second quarter of the year increased in comparison to April-June 2016. The adjusted operating profit increased from 9 million to 145 million euro.
"All our business areas improved their performance compared to the second quarter of 2016," says CEO Roeland Baan, to the newspaper Hufvudstadsbladet.
He says that the rise is due to both the price of stainless steel and ferro-chromium rising and the company has cut its costs. The result would be even better if none of the company's ferro-chromosomes suffered from recurrent technical problems, it is assessed by the company.
"Over the last year and a half, we have managed to make a clear change in our business. We have developed sales and production and reduced our expenses, "says Baan.
The upswing is radical because Outokumpu has been deeply losing for several years.
The company expects that demand for stainless steel remains good both in Europe and in the United States. In the third quarter, however, it is still forecast that the normal seasonal variations have a negative impact on demand.
- In addition, the price cuts on commodities deteriorate our balance because we use raw materials we bought earlier for a higher price.
However, the company warns for the third quarter. The steel company Outokumpu estimates that the adjusted EBITDA result will be significantly lower during the third quarter of 2017, compared with the second quarter, when the result was EUR 199 million.
