Outokumpu interim report January-September 2024 - Solid third-quarter adjusted EBITDA driven by business areas Europe and Ferrochrome
Outokumpu reported Q3 2024 results with adjusted EBITDA of EUR 86 million, up from EUR 51 million in Q3 2023. Stainless steel deliveries reached 459,000 tonnes, slightly higher than last year's 449,000 tonnes. The company's sales decreased to EUR 1,518 million, with earnings per share of EUR 0.05.
Business area Europe showed improved performance with EUR 59 million adjusted EBITDA, while Americas' adjusted EBITDA declined to EUR 5 million. Ferrochrome maintained solid performance with EUR 29 million adjusted EBITDA. The company expects Q4 2024 stainless steel deliveries to decrease by 0-10% compared to Q3, with adjusted EBITDA forecasted lower than Q3.
Outokumpu ha riportato i risultati del terzo trimestre 2024 con EBITDA rettificato di 86 milioni di euro, in aumento rispetto ai 51 milioni di euro del terzo trimestre 2023. Le consegne di acciaio inossidabile hanno raggiunto 459.000 tonnellate, leggermente superiori alle 449.000 tonnellate dell'anno scorso. Le vendite dell'azienda sono diminuite a 1.518 milioni di euro, con utili per azione di 0,05 euro.
La divisione Europa ha mostrato un miglioramento delle performance con un EBITDA rettificato di 59 milioni di euro, mentre l'EBITDA rettificato delle Americhe è sceso a 5 milioni di euro. Il ferrochrome ha mantenuto una solida performance con un EBITDA rettificato di 29 milioni di euro. L'azienda prevede che le consegne di acciaio inossidabile del quarto trimestre 2024 diminuiranno del 0-10% rispetto al terzo trimestre, con un EBITDA rettificato previsto inferiore a quello del terzo trimestre.
Outokumpu informó los resultados del tercer trimestre de 2024 con EBITDA ajustado de 86 millones de euros, en comparación con los 51 millones de euros del tercer trimestre de 2023. Las entregas de acero inoxidable alcanzaron 459,000 toneladas, ligeramente superiores a las 449,000 toneladas del año pasado. Las ventas de la empresa disminuyeron a 1,518 millones de euros, con ganancias por acción de 0.05 euros.
El área de negocios Europa mostró un mejor rendimiento con un EBITDA ajustado de 59 millones de euros, mientras que el EBITDA ajustado de las Américas disminuyó a 5 millones de euros. El ferrochrome mantuvo un rendimiento sólido con un EBITDA ajustado de 29 millones de euros. La empresa espera que las entregas de acero inoxidable del cuarto trimestre de 2024 disminuyan entre un 0 y un 10% en comparación con el tercer trimestre, con un EBITDA ajustado pronosticado inferior al del tercer trimestre.
Outokumpu는 2024년 3분기 실적을 발표하며 조정된 EBITDA가 8,600만 유로에 달했다고 밝혔습니다. 이는 2023년 3분기의 5,100만 유로에서 증가한 수치입니다. 스테인리스강 출하는 459,000톤으로, 작년의 449,000톤보다 약간 높았습니다. 회사의 매출은 15억 1,800만 유로로 감소했으며, 주당 수익은 0.05 유로입니다.
유럽 비즈니스 분야는 5,900만 유로의 조정된 EBITDA로 성과가 향상된 반면, 아메리카 지역의 조정된 EBITDA는 500만 유로로 감소했습니다. 페로크롬은 2,900만 유로의 조정된 EBITDA로 안정적인 성과를 유지했습니다. 회사는 2024년 4분기 스테인리스강 출하량이 3분기 대비 0-10% 감소할 것으로 예상하며, 조정된 EBITDA는 3분기보다 낮을 것으로 예측하고 있습니다.
Outokumpu a annoncé les résultats du troisième trimestre 2024 avec un EBITDA ajusté de 86 millions d'euros, en hausse par rapport à 51 millions d'euros au troisième trimestre 2023. Les livraisons d'acier inoxydable ont atteint 459 000 tonnes, légèrement supérieures aux 449 000 tonnes de l'année dernière. Les ventes de l'entreprise ont diminué à 1 518 millions d'euros, avec un bénéfice par action de 0,05 euro.
Le secteur d'activité Europe a montré une performance améliorée avec un EBITDA ajusté de 59 millions d'euros, tandis que l'EBITDA ajusté des Amériques a chuté à 5 millions d'euros. Le ferrochrome a maintenu une performance solide avec un EBITDA ajusté de 29 millions d'euros. L'entreprise s'attend à ce que les livraisons d'acier inoxydable au quatrième trimestre 2024 diminuent de 0 à 10 % par rapport au troisième trimestre, avec un EBITDA ajusté prévu en baisse par rapport au troisième trimestre.
Outokumpu berichtete über die Ergebnisse des 3. Quartals 2024 mit einem bereinigten EBITDA von 86 Millionen Euro, im Vergleich zu 51 Millionen Euro im 3. Quartal 2023. Die Lieferungen von rostfreiem Stahl erreichten 459.000 Tonnen, was leicht über den 449.000 Tonnen des Vorjahres liegt. Der Umsatz des Unternehmens sank auf 1.518 Millionen Euro, mit einem Gewinn pro Aktie von 0,05 Euro.
Der Geschäftsbereich Europa zeigte eine verbesserte Leistung mit einem bereinigten EBITDA von 59 Millionen Euro, während das bereinigte EBITDA der Amerikas auf 5 Millionen Euro fiel. Ferrochrom erzielte eine solide Leistung mit einem bereinigten EBITDA von 29 Millionen Euro. Das Unternehmen erwartet, dass die Lieferungen von rostfreiem Stahl im 4. Quartal 2024 um 0-10% im Vergleich zum 3. Quartal zurückgehen werden, mit einem bereinigten EBITDA, das unter dem des 3. Quartals prognostiziert wird.
- Adjusted EBITDA increased to EUR 86 million in Q3 2024 from EUR 51 million in Q3 2023
- Business area Europe's adjusted EBITDA improved to EUR 59 million
- Stainless steel deliveries increased 2% year-over-year to 459,000 tonnes
- Earnings per share improved to EUR 0.05 from EUR -0.13 in Q3 2023
- Free cash flow deteriorated to EUR -113 million from EUR -24 million in Q3 2023
- Return on capital employed (ROCE) declined to -7.1% from 5.3%
- Business area Americas' adjusted EBITDA dropped to EUR 5 million from EUR 53 million in Q3 2023
- Guidance indicates lower adjusted EBITDA expected for Q4 2024
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 on October 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 Marcegaglia Steel Group and Outokumpu reclassified its Long Products businesses to be divested assets held for sale and discontinued operations. The divestment was completed on January 3, 2023, and the gain on sale of
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
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–
The planned maintenance break in Tornio,
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
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
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, October 30, at 3.00pm EET
A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 3.00 pm EET at https://outokumpu.videosync.fi/q3-2024/register hosted by President and CEO Kati ter Horst and CFO Marc-Simon Schaar.
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
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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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SOURCE Outokumpu Oyj
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