Outokumpu interim report January-September 2024 - Solid third-quarter adjusted EBITDA driven by business areas Europe and Ferrochrome
Highlights in Q3 2024
- Stainless steel deliveries were 459,000 tonnes (449,000 tonnes)*.
- Adjusted EBITDA amounted to EUR 86 million (EUR 51 million).
- EBITDA was EUR 81 million (EUR 18 million).
- ROCE amounted to -7.1% (5.3%).
- Free cash flow was EUR -113 million (EUR -24 million incl. discontinued operations).
- Earnings per share was EUR 0.05 (
EUR -0.13 ). - On
July 9, 2024 , Kati ter Horst was appointed as the President and CEO of Outokumpu and she started after the reporting period onOctober 1, 2024 .
Highlights in Q1–Q3/2024
- Stainless steel deliveries were 1,371,000 tonnes (1,455,000 tonnes)*.
- Adjusted EBITDA amounted to EUR 180 million (EUR 445 million).
- EBITDA was EUR 174 million (EUR 401 million).
- ROCE amounted to -7.1% (5.3%).
- Free cash flow was
EUR -105 million (EUR 134 million incl. discontinued operations). - Earnings per share was
EUR -0.02 (EUR 0.30 ) - The impact of the political strike in
Finland in the first half of 2024 was approximately EUR -60 million. - The dividend of EUR 110 million from the year 2023 was paid in the second quarter.
- The most recent share buyback program was completed on
February 29, 2024 , and Outokumpu repurchased 8,357,545 shares during 2024.
*Figures in parentheses refer to the corresponding period for 2023, unless otherwise stated.
Key figures (EUR million, or as indicated) |
Q3/24 |
Q3/23 |
Q2/24 |
Q1-Q3/24 |
Q1-Q3/23 |
2023 |
Sales |
1,518 |
1,531 |
1,540 |
4,537 |
5,447 |
6,961 |
EBITDA |
81 |
18 |
56 |
174 |
401 |
416 |
Adjusted EBITDA 1) |
86 |
51 |
56 |
180 |
445 |
517 |
EBIT |
32 |
-45 |
1 |
14 |
214 |
-100 |
Adjusted EBIT 1) |
31 |
-12 |
1 |
15 |
261 |
274 |
Result before taxes |
22 |
-60 |
-7 |
-14 |
187 |
-133 |
Net result for the period |
20 |
-55 |
-5 |
-8 |
131 |
-111 |
Earnings per share |
0.05 |
-0.13 |
-0.01 |
-0.02 |
0.30 |
-0.26 |
Return on capital employed, rolling 12 months (ROCE), % 2) |
-7.1 |
5.3 |
-8.7 |
-7.1 |
5.3 |
-2.1 |
Capital expenditure |
37 |
31 |
37 |
133 |
84 |
170 |
Free cash flow3) |
-113 |
-24 |
35 |
-105 |
134 |
290 |
Stainless steel deliveries, 1000 tonnes |
459 |
449 |
468 |
1,371 |
1,455 |
1,906 |
|
|
|
|
|
|
|
Net result for the period from all operations incl discontinued operations |
20 |
-56 |
-5 |
-8 |
136 |
-106 |
|
||||||
1) Adjusted EBITDA or EBIT = EBITDA or EBIT – Items affecting comparability. |
||||||
2) The balance sheet component in 2022 includes the equity component of discontinued operations. |
||||||
3) The 2023 reference periods include discontinued operations. |
During 2022, Outokumpu announced that it had signed an agreement to divest the majority of the Long Products business operations to
President & CEO Kati ter Horst:
"I am honored to have started as Outokumpu's President and CEO and be given the opportunity to lead the company into its next strategic phase. My immediate focus will be on ensuring a smooth transition and continuing to deliver on the
My priorities are to reinforce our operational performance, strengthen our competitiveness, and maintain financial discipline. These are even more important now, as we are facing challenging market conditions both in
During the third quarter, Outokumpu's adjusted EBITDA increased to
In business area
In business area
Business area Ferrochrome had a solid result thanks to excellent operational performance and adjusted EBITDA reached
Safety is our priority. Our safety performance remained at a world-class level despite a somewhat higher incident rate in the third quarter. We want to ensure that all our employees get home safe every day.
Decarbonization is one of the key focus areas in Outokumpu's strategy. I am pleased to state that we are firmly committed to this path and are making good progress. We have maintained our recycled material content at 95%, which is the highest in the industry and a key contributor to us having the industry's lowest carbon footprint.
I am very excited to embark on this journey at Outokumpu. My message is one of continuity and confidence – Outokumpu has a strong foundation, and there is great potential ahead. I look forward to working with our employees, customers, suppliers and other stakeholders to advance Outokumpu's strategic journey."
Outlook for Q4 2024
Group stainless steel deliveries in the fourth quarter are expected to decrease by 0–10% compared to the third quarter, driven by deteriorating markets for both business areas
The planned maintenance break in
Energy costs for business area
With the current raw material prices, some raw material-related inventory and metal derivative losses are forecasted to be realized in the fourth quarter.
Guidance for Q4 2024:
Adjusted EBITDA in the fourth quarter of 2024 is expected to be lower compared to the third quarter.
Results
Q3 2024 compared to Q3 2023
Outokumpu's sales in the third quarter of 2024 decreased to EUR 1,518 million (EUR 1,531 million). Total stainless steel deliveries were 2% higher. Deliveries in business area
Adjusted EBITDA in the third quarter of 2024 increased to EUR 86 million (EUR 51 million). Profitability was supported by higher realized prices for stainless steel. Higher realized prices in
EBIT amounted to
Net result increased to
Q3 2024 compared to Q2 2024
Outokumpu's sales decreased to EUR 1,518 million in the third quarter of 2024 (Q2/2024: EUR 1,540 million). Total stainless steel deliveries were 2% lower compared to the previous quarter. In business area
Outokumpu's adjusted EBITDA increased to
Realized prices for stainless steel remained stable in both
EBIT amounted to
Net result in the third quarter amounted to
Q1–Q3/2024 compared to Q1–Q3/2023
During January–September 2024, Outokumpu's sales decreased to
Outokumpu's adjusted EBITDA decreased to
The impact of the political strike on adjusted EBITDA was approximately
Raw material-related inventory and metal derivative losses amounted to
EBIT amounted to
Net result declined to
Adjusted EBITDA by segment (EUR million) |
Q3/24 |
Q3/23 |
Q2/24 |
Q1-Q3/24 |
Q1-Q3/23 |
2023 |
|
59 |
-29 |
28 |
91 |
144 |
148 |
|
5 |
53 |
21 |
49 |
232 |
285 |
Ferrochrome |
29 |
21 |
22 |
73 |
73 |
96 |
Other operations and intra-group items |
--8 |
5 |
-15 |
-34 |
-4 |
-12 |
Total adjusted EBITDA |
86 |
51 |
56 |
180 |
445 |
517 |
|
|
|
|
|
|
|
Items affecting comparability in EBITDA (EUR million) |
Q3/24 |
Q3/23 |
Q2/24 |
Q1-Q3/24 |
Q1-Q3/23 |
2023 |
|
-4 |
— |
0 |
-2 |
-7 |
-52 |
|
— |
-5 |
— |
— |
-8 |
-16 |
Ferrochrome |
— |
— |
— |
— |
— |
-3 |
Other operations |
0 |
-28 |
0 |
-4 |
-29 |
-31 |
Total items affecting comparability in EBITDA |
-5 |
-33 |
0 |
-6 |
-44 |
-102 |
|
|
|
|
|
|
|
Total EBITDA |
81 |
18 |
56 |
174 |
401 |
416 |
A live webcast and conference call today,
A live webcast and conference call to analysts, investors and representatives of media will be arranged today at
To ask questions, please participate in the conference call by registering at https://palvelu.flik.fi/teleconference/?id=50049025. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.
All the interim report materials, a link to the webcast and later on its recording will be available at www.outokumpu.com/en/investors.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, SVP – Communications and Brand, tel. +358 40 753 7374,
or
Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at) outokumpu.com
Outokumpu Corporation
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Public/18751/4058612/80a0021d11156bec.pdf |
Interim report Q3 2024 FINAL |
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