wiredinUSA August 2011

INDEX

Mika Seitovirta of Outokumpu

Outokumpu warns of further operating loss

Finnish stainless steel maker Outokumpu reported an operating loss of $239.9 million in the second quarter and warned that weak demand and raw material inventory losses will maintain the situation into the current quarter. The result was heavily influenced by one-off costs, including restructuring costs and raw material-related inventory losses, and Outokumpu was also hard hit by the global downturn as customers halted investment projects. Mika Seitovirta, who took over as chief executive in April, and has since launched a restructuring plan including

cuts of up to 350 jobs this year, said in the earnings statement: “In the stainless business, improving sales, generating cash and reducing costs are part of a never-ending race. Current market circumstances mean that the pressure to move even faster with this work and related actions is higher.” Outokumpu products include corrosion-resistant rebar, and stainless steel rod for wire drawing, bright bar processing, fastener manufacture, and in the production of welding consumables.

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wiredInUSA - August

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