Outokumpu upgrades Q4 guidance after unexpected sales boost

Stainless steel producer Outokumpu has upgraded its guidance for the fourth quarter of 2020 following better-than-expected sales, the Finnish company said on Tuesday December 15.

With production facilities in Finland, Sweden, Germany, the UK, Mexico and the United States, and sales offices around the world, Outokumpu now expects its earnings before interest, taxes, depreciation, and amortization (Ebitda) to be higher than the third quarter because stainless steel deliveries are estimated to have increased by about 10-15%.

The increase in deliveries was attributed to a better-than-expected market recovery following the initial Covid-19 restrictions.

Outokumpu previously said that its Ebitda for the fourth quarter would be unchanged from the third quarter at €22 million ($26.7 million).

The fourth-quarter performance is also expected to be supported by improved cost efficiency and the positive impact of raw materials costs.

Fastmarkets’ weekly price assessment for stainless steel cold-rolled sheet 2mm grade 304 transaction domestic, delivered North Europe was €2,100-2,130 per tonne on Friday December 11, up from €1,980-2,030 per tonne at the end of the third quarter on September 25.

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