Outokumpu Oyj: Sales and profitability declined in Q1 2023

Steel company Outokumpu Oyj reported its first-quarter 2023 financial results, showing a decrease in both sales and profitability compared to the same period last year.

The company's sales amounted to EUR 2,006 million, down from EUR 2,573 million in the corresponding period of the previous year. Deliveries of stainless steel also fell to 505 thousand tonnes, from 605 thousand tonnes a year ago.

Adjusted EBITDA decreased to EUR 204 million from EUR 350 million in the prior year. Earnings Before Interest and Taxes (EBIT) dropped to EUR 135 million, compared to EUR 289 million previously. The company's net result for the period was EUR 97 million, compared to EUR 230 million in the previous year.

Outokumpu Oyj CEO Roope Rajala noted that the outlook for the next quarter is stable, but the geopolitical situation and cost pressures could affect the industry.

The company's Return on Capital Employed (ROCE) was 18.4 percent, and the equity-to-assets ratio improved to 60 percent from 59.2 percent, indicating a solid financial position.