Outokumpu logo is seen at the company’s head office in Helsinki, Finland May 22, 2018. REUTERS/Jussi Rosendahl/File Photo
Finnish stainless steel maker Outokumpu (OUT1V.HE) reported third-quarter core profit well below market expectations on Tuesday and said it would reorganise its German operations, impacting around 200 jobs.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) slumped 83% to 51 million euros ($54.55 million) in the July-September period as weakness in European markets persisted. This was below analysts’ forecast of 86.6 million in a company-provided poll.
In a separate statement, the group said it would restructure its operations in Germany by centralising advanced materials production to its Dillenburg plant and closing a coil service center in Hockenheim.
These measures would result in yearly savings of about 15 million euros, the group said.
Weak European steel markets and low prices have been weighing on steelmakers’ profits, which had hit record levels in 2021 and 2022.
($1 = 0.9348 euros)
Reporting by Jagoda Darlak in Gdansk; editing by Milla Nissi
