Outokumpu tops Q3 core profit forecast, but warns of tough Q4 (updated)

Outokumpu Oyj

30/10/2024 07:40

(Adds details on results and outlook in paragraphs 2-4, context
in paragraphs 6-7)
       Oct 30 (Reuters) - Finnish stainless steel maker
Outokumpu  OUT1V.HE  reported third-quarter core profit above
market expectations on Wednesday, supported by higher realized
prices for stainless steel in Europe and its strong ferrochrome
business.
    However, it warned that deteriorating markets in Europe and
North America would hurt its stainless steel business in the
final quarter of the year.
    Stainless steel deliveries rose 2% in the July-September
period, but were expected to be flat or decline by up to 10% in
the fourth quarter, the company said.
    "We are facing challenging market conditions both in Europe
and the Americas," Outokumpu's new CEO Kati ter Horst said in
the earnings statement.
    Outokumpu's adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) soared 69% to 86 million
euros ($93 million) in the third quarter, beating analysts'
average forecast of 72.9 million in a company-provided poll.
    European steelmakers have been struggling with weak demand
and cost inflation, which last year dragged down profits from
the record levels seen in 2021 and 2022.
    Outokumpu's rivals SSAB  SSABa.ST  and Acerinox  ACX.MC 
earlier this month also warned of tough market conditions in the
fourth quarter, after reporting plunging profits for the third.
($1 = 0.9241 euros)

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