Outokumpu reports weaker 2023 performance amid softening steel demand
Stainless steel producer Outokumpu recorded an adjusted EBITDA of EUR 517 million for 2023, reflecting a decline in delivery volumes and a challenging market environment.
Outokumpu Oyj released its 2023 financial statement, showing an adjusted EBITDA of EUR 517 million, down from EUR 1,256 million in 2022. The company’s stainless steel deliveries for the year reached 1.9 million tonnes, a 9% decrease compared to the previous year, as the global market faced muted demand and distributor de-stocking.
The fourth quarter results were heavily impacted by a EUR 264 million impairment charge associated with a renegotiated hot-rolling agreement in the Americas business area. This one-time adjustment significantly weighed on the company’s operating profit and bottom-line result for the final months of the year.
CEO Heikki Malinen noted that the performance during the year was affected by a shift in market conditions, particularly in the second half. While the European market reached a low point in the third quarter, recovery has remained slow. The company stated that it has implemented proactive measures to stabilize profitability across its operations.
Looking ahead, the Board of Directors has proposed a dividend of EUR 0.26 per share for 2023. The company also confirmed that it continued to execute share buyback programs throughout the latter part of the year.