Outokumpu Q1 statement – adjusted EBITDA of EUR 54 M

10 May 2019

Outokumpu’s sales increased to EUR 1,715 M (EUR 1,671 M). The first-quarter adjusted EBITDA of EUR 54 M was significantly lower than EUR 133 M in the Q1 of 2018 driven particularly by increased graphite electrode and other input costs. Deliveries decreased due to high distributor inventories and softer demand in the Americas and Long Products. Realized base prices decreased as a result of a challenging market in Europe, partly offset by improved pricing and product mix in the Americas. Ferrochrome profitability was negatively impacted by lower contract price and higher costs. The adjusted EBITDA includes a loss of EUR 12 M from currency derivatives.

In the Q2, there are no significant changes expected in the stainless steel markets. As a result, Outokumpu expects its stainless steel deliveries to remain at a similar level to the Q1 of 2019.

The Ferrochrome result will be positively impacted by the higher ferrochrome benchmark price, partly offset by planned maintenance work in the Tornio ferrochrome operations.

Outokumpu expects its second-quarter adjusted EBITDA to be higher than in the first quarter of 2019 (Q1/19: EUR 54 M).