Half-year report
Outokumpu half-year report January-
Highlights in Q2 2022
- Stainless steel deliveries were 603,000 tonnes (626,000 tonnes)1.
-
Adjusted EBITDA increased to
EUR 547 million (EUR 223 million ). -
EBITDA was
EUR 547 million (EUR 223 million ). - Return on capital employed increased to 29.9% (5.2%)
-
Operating cash flow amounted to
EUR 104 million (EUR 6 million ). -
Net debt decreased to
EUR 289 million (March 31, 2022 :EUR 294 million ). -
Gearing decreased to 7.3% (
March 31, 2022 : 9.0%).
Highlights in January-
- Stainless steel deliveries were 1,250,000 tonnes (1,234,000 tonnes).
-
Adjusted EBITDA amounted to
EUR 923 million (EUR 400 million ). -
EBITDA was
EUR 923 million (EUR 400 million ). -
Operating cash flow amounted to
EUR 251 million (EUR 33 million ). -
Net result was
EUR 636 million (EUR 212 million ).
1) Figures in parentheses refer to the corresponding period for 2021, unless otherwise stated.
Q2 2022 compared to Q2 2021
Outokumpu's sales increased to
Q2 2022 compared to Q1 2022
Outokumpu's sales increased to
January-
During the first-half of 2022, Outokumpu's sales increased to
Group key figures |
| Q2/22 | Q2/21 | Q1/22 | Q1-Q2/22 | Q1-Q2/21 | 2021 |
Sales | EUR million | 2,951 | 1,873 | 2,760 | 5,712 | 3,546 | 7,709 |
EBITDA | EUR million | 547 | 223 | 377 | 923 | 400 | 1,009 |
Adjusted EBITDA 1) | EUR million | 547 | 223 | 377 | 923 | 400 | 1,021 |
EBIT | EUR million | 483 | 163 | 313 | 796 | 279 | 705 |
Adjusted EBIT 1) | EUR million | 483 | 163 | 313 | 796 | 279 | 758 |
Result before taxes | EUR million | 467 | 143 | 305 | 772 | 244 | 640 |
Net result for the period | EUR million | 385 | 129 | 251 | 636 | 212 | 553 |
Earnings per share | EUR | 0.85 | 0.30 | 0.55 | 1.40 | 0.50 | 1.26 |
Diluted earnings per share | EUR | 0.78 | 0.28 | 0.51 | 1.29 | 0.46 | 1.17 |
Return on capital employed, rolling 12 months 2) | % | 29.9 | 5.2 | 23.0 | 29.9 | 5.2 | 18.4 |
Net cash generated from operating activities | EUR million | 104 | 6 | 147 | 251 | 33 | 597 |
Net debt at the end of period | EUR million | 289 | 897 | 294 | 289 | 897 | 408 |
Debt-to-equity ratio at the end of period | % | 7.3 | 31.9 | 9.0 | 7.3 | 31.9 | 13.1 |
Capital expenditure | EUR million | 32 | 37 | 31 | 62 | 84 | 175 |
Stainless steel deliveries | 1,000 tonnes | 603 | 626 | 647 | 1,250 | 1,234 | 2,395 |
Personnel at the end of period, full-time equivalent 3) |
| 9,173 | 9,088 | 9,197 | 9,173 | 9,088 | 9,096 |
1) Adjusted EBITDA or EBIT = EBITDA or EBIT - Items classified as adjustments. | |||||||
2) Outokumpu has redefined it's capital employed and ROCE definitions in Q2/2022. Comparative information has been restated accordingly. Please see more information at the end of this report. | |||||||
3) On | |||||||
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President & CEO
Our strong performance continued in the second quarter - we delivered another record-level adjusted EBITDA of
The past months have been eventful for Outokumpu. To mention a few of the key events of the second quarter, we launched the second phase of our strategy, introduced emission-minimized stainless steel product line Circle Green and announced our aim to achieve carbon neutrality at our Kemi chrome mine by 2025. In July, we announced that we will divest the majority of Long Products business area. This divestment represents a successful closing of the turnaround program, which was started two years ago.
At the end of the second quarter, our net debt totaled only 289 million. This is a great achievement, and I am proud that we have achieved the targets of the first phase of the strategy to deleverage the company and entered the second phase ahead of time. The aim of the second phase is to strengthen the core. We will be focusing on three key priorities: sustainability, growth from productivity and customer-focused steering.
In addition, new financial targets were launched: we aim to improve our EBITDA run-rate level by another
In the first half of 2022, our adjusted EBITDA reached
The market environment has been exceptionally favorable, but we have now started to see softening especially on the commodity business. Upcoming growth is expected to be generated from pro grades business looking for global expansion.
In the first half of 2022, Asian imports into
In
We are living in exceptionally uncertain times both politically and economically. Outokumpu is financially stronger than ever and resilient to withstand changing circumstances.
Outlook for Q3 2022 for continuing operations*
Group stainless steel deliveries for continuing operations* in the third quarter are expected to decrease by 10-20% compared to the second quarter.
Prices for stainless steel in the already received orders have remained at a high level.
The European ferrochrome benchmark price decreased to
Energy costs are expected to increase in the third quarter and impact especially negatively business area Ferrochrome.
Planned maintenance costs in the third quarter are expected to increase by approximately
With current raw material prices, significant raw material-related inventory and metal derivative losses are expected to be realized in the third quarter.
Guidance for Q3 2022
Adjusted EBITDA for continuing operations* in the third quarter of 2022 is expected to be lower compared to the second quarter.
*Continuing operations is excluding the Long Products business units to be divested, which will be classified as assets held for sale, reported and restated as discontinued operations in Q3/2022. Continuing operations represents approximately 90% of Group second-quarter adjusted EBITDA.
A live webcast and conference call today at
A live webcast and conference call to analysts, investors and representatives of media will be arranged today,
To participate via conference call and to ask questions, please dial in the call 5-10 minutes before the beginning of the event:
US: +1 631 913 1422
PIN: 17728093#
All the half-year report materials, a link to the webcast and later on its recording are available at www.outokumpu.com/en/investors.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669
Media: Päivi Allenius, VP - Communications, tel. +358 40 753 7374
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization's basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,000 professionals in more than 30 countries, with headquarters in
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