EUROPE
NEWS
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
EUROPE NEWS
wiredInUSA - August
wiredInUSA - August
21
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.
Mika Seitovirta
of Outokumpu
20
