Shares in stainless steel maker Outokumpu fell after a “wet” outlook
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HELSINKI, 8.2. (Reuters) – Shares of Finnish stainless steel manufacturer Outokumpu (OUT1V.HE)fell as much as 7% on Tuesday after its first – quarter outlook disappointed investors.
Outokumpu expects its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to remain at or above the same level as in the fourth quarter, JP Morgan analysts describe the view as “wet.”
“You can drive the bus according to the Q1’22 guidelines for (adjusted) EBITDA to a” similar or higher level “(quarterly), analysts wrote in a note, adding that the consensus was 10 percent for the quarter. Quarterly increase,” which may be dropped 2-3 % after today “.
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Outokumpu’s share fell 6% to 5.7 euros at 08.32 GMT, despite also announcing fourth-quarter sales up 64 percent to 2.22 billion euros and stainless steel deliveries up 12%, both of which exceeded forecasts. It also reported higher sales prices.
– However, profitability was affected by significantly higher energy and consumer prices as well as higher fixed costs, it said in a statement.
Adjusted EBITDA for the fourth quarter rose to EUR 326 million from EUR 78 million in the previous year, which is broadly in line with the EUR 333 million forecast by 14 analysts in the company’s survey.
Outokumpu’s Board of Directors proposed that EUR 0.15 per share be distributed for 2021.
($ 1 = $ 0.8758)
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Reported by Anne Kauranen; edited by Louise Heavens and Jason Neely
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