Outokumpu interim report January-March 2022: Another strong quarter, adjusted EBITDA amounting to EUR 377 million
Highlights in Q1 2022
- Stainless steel deliveries were 647,000 tonnes (608,000 tonnes)1.
- Adjusted EBITDA increased to
EUR 377 million (EUR 177 million ). - EBITDA was
EUR 377 million (EUR 177 million ). - Net result increased to
EUR 251 million (EUR 82 million ). - Operating cash flow amounted to
EUR 147 million (EUR 27 million ). - Net debt decreased to
EUR 294 million (December 31, 2021 :EUR 408 million ). - Gearing decreased to 9.0% (
December 31, 2021 : 13.1%). - Dividend of
EUR 68 million was recognized as a dividend liability onMarch 31, 2022 , and paid in April.
1) Figures in parentheses refer to the corresponding period for 2021, unless otherwise stated.
Q1 2022 compared to Q1 2021
Outokumpu's sales increased to
Q1 2022 compared to Q4 2021
Outokumpu's sales amounted to
Group key figures |
|
Q1/22 |
Q1/21 |
Q4/21 |
2021
|
Sales |
EUR million |
2,760 |
1,673 |
2,215 |
7,709
|
EBITDA |
EUR million |
377 |
177 |
314 |
1,009
|
Adjusted EBITDA 1) |
EUR million |
377 |
177 |
326 |
1,021
|
EBIT |
EUR million |
313 |
116 |
191 |
705
|
Adjusted EBIT 1) |
EUR million |
313 |
116 |
245 |
758
|
Result before taxes |
EUR million |
305 |
101 |
178 |
640
|
Net result for the period |
EUR million |
251 |
82 |
159 |
553
|
Earnings per share 2) |
EUR |
0.55 |
0.20 |
0.35 |
1.26
|
Diluted earnings per share 2) |
EUR |
0.51 |
0.19 |
0.33 |
1.17
|
Return on capital employed |
% |
23.8 |
0.5 |
18.8 |
18.8
|
Net cash generated from operating activities |
EUR million |
147 |
27 |
384 |
597
|
Net debt at the end of period |
EUR million |
294 |
1,073 |
408 |
408
|
Debt-to-equity ratio at the end of period |
% |
9.0 |
43.7 |
13.1 |
13.1
|
Capital expenditure |
EUR million |
31 |
47 |
59 |
175
|
Stainless steel deliveries |
1,000 tonnes |
647 |
608 |
586 |
2,395
|
Personnel at the end of period, full-time equivalent |
|
9,197 |
9,256 |
9,096 |
9,096
|
1) Adjusted EBITDA or EBIT = EBITDA or EBIT – Items classified as adjustments. |
|||||
2) Calculated based on the |
President & CEO
In the first quarter of 2022, Outokumpu performed well despite the uncertainty caused by
So far, the impact of the war on Outokumpu has been limited. Our mills have been running at full capacity and our adjusted EBITDA reached
All business areas delivered solid first-quarter results. We have continued to build a strong position in the
Despite the ongoing uncertainty brought about by the tense geopolitical situation, the tailwind in the market remained and realized prices for stainless steel continued to strengthen in the first quarter. However, imports from
While there were significant price increases in raw materials, energy, and logistics, we were able to manage our costs successfully. Going forward, we will keep a continuous focus on consumables consumption to ease inflationary pressure.
We made disciplined progress in our strategy execution and have now reached a cumulative EBITDA run-rate improvement of
Sustainability is a key factor in running a successful stainless steel business. We continued to take steps on our sustainability journey towards carbon neutrality by increasing the share of low-carbon electricity in our energy mix and improving energy efficiency from the already good level of last year.
I am proud that we have been able to continue with our safety improvement despite high-capacity utilization. Our quarterly total recordable injury frequency rate decreased to 1.7, which is an excellent result. I want to thank our employees for improving on what was already a great result!
I am very pleased that after many challenging years we are back on track with paying dividends. The dividend of
Outlook for Q2 2022
Group stainless steel deliveries in the second quarter are expected to remain at a similar level compared to the first quarter.
The European ferrochrome benchmark price further increased to
With current raw material prices, significant raw material-related inventory and metal derivative gains are expected to be realized in the second quarter.
Supply chain uncertainties resulting from the war in
Adjusted EBITDA in the second quarter of 2022 is expected to be higher compared to the first quarter.
A live webcast and conference call today at
A live webcast and conference call to analysts, investors and representatives of media will be arranged today,
To participate via conference call and to ask questions, please dial in the call 5–10 minutes before the beginning of the event:
US: +1 631 913 1422
PIN: 61980159#
All the interim report materials, a link to the webcast and later on its recording are available at www.outokumpu.com/en/investors.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media:
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