Outokumpu half-year report: Q2 adjusted EBITDA increased to EUR 223 million

Outokumpu’s sales increased to EUR 1,873 million in the second quarter of 2021 (EUR 1,420 million) and adjusted EBITDA amounted to EUR 223 million (EUR 45 million). Total stainless steel deliveries were 20% higher as the reference period last year was heavily impacted by weakened global demand caused by the COVID-19 pandemic. Increased realized prices for stainless steel in both Europe and Americas and higher ferrochrome sales price contributed to profitability. Freight costs were at a higher level in Americas and the successful roll-out of the new ERP system in Avesta, Sweden also increased costs compared to the reference period. Raw material-related inventory and metal derivative gains amounted to EUR 7 million compared to the losses of EUR 16 million in the reference period. Other operations and intra-group items’ adjusted EBITDA was EUR -19 million (EUR -7 million).

Q2 2021 compared to Q1 2021

Outokumpu’s sales increased to EUR 1,873 million in the second quarter of 2021 (Q1/2021: EUR 1,673 million) and adjusted EBITDA amounted to EUR 223 million (Q1/2021: EUR 177 million). Demand for stainless steel continued to be strong. Total stainless steel deliveries grew by 3% and realized prices for stainless steel increased in all regions compared to the previous quarter. A higher ferrochrome sales price also impacted positively on profitability in the second quarter. Fixed costs increased, mainly due to EUR 10 million higher planned maintenance costs and the successful roll-out of the new ERP system in Avesta, Sweden. On a group level, inflationary pressure was not yet recognized in consumable prices during the second quarter, but freight costs increased in Americas. Raw material-related inventory and metal derivative gains were significantly lower compared to the previous quarter and amounted to EUR 7 million (Q1/2021: gains of EUR 42 million). Other operations and intra-group items’ adjusted EBITDA amounted to EUR -19 million (Q1/2021: EUR -8 million).

January–June 2021 compared to January–June 2020

During the first half of 2021, Outokumpu’s sales rose to EUR 3,546 million (EUR 3,035 million) and adjusted EBITDA stood at EUR 400 million (EUR 151 million). As the reference period was negatively impacted by the global COVID-19 pandemic, stainless steel deliveries in the first half of 2021 were 11% higher than the same period last year. In 2021, profitability was also positively impacted by the higher ferrochrome sales price and lower variable and fixed cost levels. Raw material-related inventory and metal derivative gains amounted to EUR 49 million in the first half of 2021 (losses of EUR 38 million), mainly due to positive timing impacts. Other operations and intra-group items’ adjusted EBITDA amounted to EUR -27 million (EUR -13 million).

Source: Outukumpu, Photo: Fotolia