Outokumpu's Steel Deliveries Decline, Sales and Profit Turn Negative
Steel company Outokumpu Oyj reported a decrease in steel deliveries and a net loss for the final quarter of 2023 and the first quarter of 2024.
Outokumpu Reports Falling Steel Shipments and Negative Profit
Steel manufacturer Outokumpu Oyj has released figures indicating a significant decline in its steel deliveries and financial performance toward the end of 2023 and into early 2024.
The company's data shows a downward trend in stainless steel deliveries by volume. In the fourth quarter of 2023, deliveries stood at 450 thousand tonnes. This compares to 450 thousand tonnes in the same period of the previous year, with reductions to 444 thousand tonnes in Q1 2024 and 468 thousand tonnes in Q2 2024. While figures fluctuate, the overall trajectory has been downward throughout 2023.
Financial results have also been impacted by the reduced delivery volumes. Sales saw a notable decrease in 2023. For the fourth quarter of 2023, sales reached 1.513 billion euros, down from 1.895 billion euros in the prior year's corresponding period. Sales for the first quarter of 2024 were reported at 1.479 billion euros.
The company's result before taxes was negative across several quarters. In the final quarter of 2023, the result before tax was a loss of 320 million euros. Adjusted EBITDA also shows a decline, standing at 15 million euros at the end of 2023, compared to 198 million euros in the previous year. For the first quarter of 2024, adjusted EBITDA was 47 million euros.
Outokumpu's capital expenditure for the full year 2023 was 170 million euros, with a similar figure for the first quarter of 2024. Personnel numbers remained relatively stable, with 8,750 full-time equivalents and employees at the end of 2023.