First quarter 2012 highlights
Underlying operational result improved to some EUR 2 million (Q4 2011: EUR -34 million)
Operating profit was EUR 3 million (Q4 2011: EUR -71 million) including raw material related inventory gains of some EUR 14 million (Q4 2011: EUR -24 million) and net non recurring items of EUR -13 million (Q4 2011: EUR -13 million)
Strong operating cash flow of EUR 116 million (Q4 2011: EUR 132 million)
Total external deliveries at 418000 tonnes (Q4 2011: 334 000 tonnes)
Acquisition of Inoxum, ThyssenKrupp's stainless business, announced
EUR 1 billion rights offering successfully implemented
Plans for new Outokumpu Leadership Team
Plans for further personnel reductions in General Stainless
Group key figures
| Item | Q1'12 | Q4'11 | Q1'11 | FY'11 |
| Sales | 1304 | 1125 | 1371 | 5009 |
| EBITDA | 60 | -13 | 93 | 80 |
| Adjusted EBITDA | 59 | 24 | 48 | 169 |
| Operating result | 3 | -71 | 33 | -260 |
| Excluding non recurring items | 15 | -58 | 33 | -109 |
| Underlying operational result | 2 | -34 | -12 | -66 |
| Result before taxes | 6 | -134 | 17 | -253 |
| Excluding non recurring items | 19 | -108 | 17 | -318 |
| Net result for the period | 12 | -118 | 16 | -186 |
| Excluding non recurring items | 24 | -92 | 16 | -244 |
| Earnings per share | 0.06 | -0.62 | 0.09 | -0.99 |
In EUR Million
| Item | Q1'12 | Q4'11 | Q1'11 | FY'11 |
| External deliveries | 418 | 334 | 395 | 1449 |
| Stainless steel external deliveries | 399 | 323 | 380 | 1391 |
In '000 tonnes
| Item | Q1'12 | Q4'11 | Q1'11 | FY'11 |
| Stainless steel base price | 1185 | 1137 | 1215 | 1181 |
EUR per tonne
| Item | Q1'12 | Q4'11 | Q1'11 | FY'11 |
| Personnel at the end of period | 7968 | 8253 | 8452 | 8253 |
Outokumpu's underlying operational result in the first quarter improved from the fourth quarter and was EUR 2 million. The improvement in profitability was primarily a result of higher delivery volumes but a somewhat weaker mix had an adverse effect. Outokumpu's operating profit in the first quarter totaled EUR 3 million and includes some EUR 14 million of raw material related inventory gains as a result of higher metal prices and EUR 13 million of non recurring costs. The non recurring costs in the first quarter relate to the Inoxum transaction. Excluding non recurring items, operating profit totaled EUR 15 million. Net cash from operating activities in the first quarter remained strong and totaled EUR 116 million. The main contributor to the good cash flow was further reductions in levels of working capital. EUR 87 million was released from working capital in the first quarter. Outokumpu's gearing at the end of the first quarter decreased to 78.4%, slightly above Outokumpu's maximum target level of 75%. Net interest bearing debt declined by EUR 225 million to EUR 1 495 million at the end of the quarter.
Mr Mika Seitovirta CEO of Outokumpu said that "We made significant progress in many important strategic areas in the first quarter. Implementation of our short term turnaround programs to improve profitability and cash flow continued. While profitability still remains unsatisfactory, the breakeven result confirms that the Group is moving in the right direction. I'm very pleased with our strong cash flow during the quarter. The Inoxum acquisition is of enormous strategic importance as it positions Outokumpu as a new global leader in stainless steel with a balanced production structure and a broad product offering and customer base. The success of our EUR 1 billion rights issue shows that Outokumpu shareholders share our view of the significant potential offered by this acquisition. To protect the Group's profitability and cash flow, implementation of the planned cost saving programs will continue in the second quarter. I am confident that we are in a good strategic position to drive our business forward with solid results."
Source - Outokumpu
(www.steelguru.com)
