Outokumpu warns on Q2 2012 result

Finnish steel maker Outokumpu (OMX:OUT1V) found out after the fact that its second quarter was weaker than previous guidance. The company was guiding for around break-even or slightly negative underlying operational result and describes the now expected -40 million Euros “slightly weaker”. Uncertainty in Europe, declining nickel price and destocking among distributors were given as main culprits but production costs have also increased, adversely affecting profitability. Operating loss including raw-material related inventory losses and non-recurring items should be around 80 million Euros.