Finnish stainless steel producer Outokumpu reported a decline in sales and profits in the third quarter. The company's profitability declined significantly, mainly due to the decrease in shipments of stainless steel by 8%, reflecting the weak stainless steel market, especially in Europe.
underlying operating profit fell three % to 45 million euros from 128 million euros a year earlier, and was much below analysts ' expectations.
For the first nine months of 2019, Outokumpu sales decreased by 280 million euros to 5 billion. Adjusted EBITDA was halved to 190 million euros.
"the Third quarter was very challenging as we predicted. Our adjusted EBITDA decreased to EUR 45 million, mainly due to weak demand and increased imports to Europe, which led to low supply and price pressure," commented President and chief Executive officer of Outokumpu, Baan Roeland (Roeland Baan).
the company expects that the weakness in the European stainless steel market will persist for at least the next two quarters. Revised protective measures of the EU, applied since the beginning of October, did not have a noticeable effect.
"However, the market should become more balanced as the filling of quotas on imports. We also welcome the announcement by the European Commission that they have started anti-dumping investigations and countervailing duties against China and Indonesia," said Baan.
