Steel maker Outokumpu (OMX:OUT1V) managed to lift its operating result to a very small plus with a raw-material related inventory gains. After tax profit numbers are also slightly in the black with EPS of 0.06 Euro. Distributors were restocking standard grade stainless steel, which led to improved demand, which has remained rather stable during Q2 thus far. Cash flow from operations was a clear positive with 116 million.
The 1 billion rights offering aimed to chiefly finance Inoxum acquisition was oversubscribed. Outokumpu plans to include Ulrich Albrecht-Früh and Reinhard Florey from Inoxum’s management team in its Leadership Team. The company expects to cut some 150-200 jobs in Tornio, Finland and a few also from Terneuzen, The Netherlands as a part of a new round of job reductions.
The nickel price decline and weak product mix should contribute to lower base prices for stainless steel in the short term. Although ferrochrome contract prices for Q2 are higher, planned shutdowns connected to ongoing investments are expected to affect result from these operations in Q2. The share has risen 5% for the day.
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