Finland's Outokumpu posts Q4 core loss in weak stainless steel market (updated)

Outokumpu Oyj

13/02/2025 07:27

(Adds CEO quote in paragraph 4, context in paragraph 5, details
from statement in paragraphs 6-7)
       Feb 13 (Reuters) - Finland's Outokumpu  OUT1V.HE  on
Thursday reported a small core loss for the fourth quarter, as
it had warned in December, citing a weak stainless steel market
with high import pressure, and said steel prices would remain
under pressure in the first quarter of 2025.
    The stainless steel maker's adjusted loss before interest,
taxes, depreciation and amortisation (EBITDA) was 3 million
euros ($3.1 million) in the October-December period, compared
with a profit of 72 million euros a year earlier. 
    Analysts had expected a loss of 1 million euros on average,
a company-provided consensus showed.
    "Stainless steel demand in Europe was historically low,"
Outokumpu's new CEO Kati ter Horst said in the earnings
statement.
    European steelmakers have been struggling with weak demand,
cost inflation and cheaper imports from Asian rivals that has
weighed on profits.
    The company's stainless steel deliveries fell 6% in the
fourth quarter compared to a year earlier and 8% from the prior
quarter.
    However, they are expected to increase by 10% to 20% in the
first quarter compared to the last three months of 2024,
Outokumpu said.
    The group proposed a dividend of 0.26 euro per share to be
paid for 2024.
($1 = 0.9585 euros)

 (Reporting by Jagoda Darlak in Gdansk; editing by Milla Nissi)
 ((jagoda.darlak@tr.com))