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Outokumpu Oyj
Interim report
May 5, 2022 at 9.00 am EEST

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 on March 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 EUR 2,760 million in the first quarter of 2022 (EUR 1,673 million) and adjusted EBITDA reached EUR 377 million (EUR 177 million). In the strong market environment, total stainless steel deliveries grew by 6% compared to the previous year. Realized prices for stainless steel continued to increase and also the ferrochrome sales price was higher compared to the reference period. The positive impact from higher prices more than offset the negative impact from a significant cost inflation, especially in consumable prices. Raw material-related inventory and metal derivative losses amounted to EUR 42 million (gains of EUR 42 million). Negative impacts from metal hedging losses were partly offset by the positive timing gains. In the first quarter of 2022, EBIT increased to EUR 313 million (EUR 116 million) and net result to EUR 251 million (EUR 82 million).

Q1 2022 compared to Q4 2021

Outokumpu's sales amounted to EUR 2,760 million in the first quarter of 2022 (Q4/2021: EUR 2,215 million) and adjusted EBITDA increased to EUR 377 million (Q4/2021: EUR 326 million). Total stainless steel deliveries grew by 10% compared to the previous quarter, and reflected the traditional seasonality as the COVID-19 mitigation actions taken by the company were successful. The market environment remained strong and higher realized prices for stainless steel overcompensated the increase in costs. Variable costs were at an elevated level as a result of higher consumable prices, especially in ferrosilicon. Energy costs did not increase compared to the previous quarter as the negative impact was mitigated with successful energy hedging activities. Raw material-related inventory and metal derivative losses amounted to EUR 42 million in the first quarter (Q4/2021: gains of EUR 6 million).

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 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 EUR million 147 27 384 597
operating activities
Net debt at the end of EUR million 294 1,073 408 408
Debt-to-equity ratio at % 9.0 43.7 13.1 13.1
the end of period
Capital expenditure EUR million 31 47 59 175
Stainless steel deliveries 1,000 tonnes 647 608 586 2,395
Personnel at the end of 9,197 9,256 9,096 9,096
period, full-time

[1)] Adjusted EBITDA or EBIT = EBITDA or EBIT - Items classified as adjustments.
[2)] Calculated based on the May 2021 share-issue-adjusted weighted average number of shares. Comparative information of Q1/21 is presented accordingly.                                                                  

President & CEO Heikki Malinen

In the first quarter of 2022, Outokumpu performed well despite the uncertainty caused by Russia's aggressive invasion and war in Ukraine. We have decided to stop all business operations related to Russia as soon as possible. My thoughts are with the Ukrainian people in this human tragedy. Outokumpu's Annual General Meeting approved the suggestion by our Board of Directors to donate up to EUR 1 million to support relief efforts in Ukraine and neighboring countries.

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 EUR 377 million. Deliveries increased by 10%, as we were successful in mitigating the impact of the COVID-19 pandemic in production and logistics. We diligently continued to de-risk, and we were able to reduce our net debt to EUR 294 million.

All business areas delivered solid first-quarter results. We have continued to build a strong position in the Americas, supporting the geographic diversification of our earnings. In Europe, our performance in the first quarter was also solid. We have strong expertise in value added grades, and I am pleased to see the improving demand in our pro grade business. The Ferrochrome and Long Products business areas recorded excellent earnings in the first quarter.

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 Asia into Europe increased to a significant level of 35%, creating uncertainty going forward.

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 EUR 237 million, very close to reaching our EUR 250 million target.

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 EUR 0.15 per share, approved by the AGM, was paid in April 2022.

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 USD 2.16/lb for the second quarter.

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 Ukraine and associated Russian sanctions remain a risk in the second quarter.

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 3.00 pm EEST

A live webcast and conference call to analysts, investors and representatives of media will be arranged today, May 5, 2022, at 3.00 pm EEST at, hosted by President and CEO Heikki Malinen and CFO Pia Aaltonen-Forsell.

To participate via conference call and to ask questions, please dial in the call 5-10 minutes before the beginning of the event:

Finland: +358 9 8171 0310
UK: +44 333 300 0804
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

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669

Media: Päivi Allenius, VP - Communications, tel. +358 40 753 7374


Outokumpu is the global leader in stainless steel. Our customers use it to create civilization’s basic structures and its most famous landmarks. Stainless steel is sustainable, durable and designed to last forever. We aim to be the best value creator in stainless by 2020 through our competitive edge of customer orientation and efficiency. With our expertise, we can tailor stainless steel into any form and for almost any purpose.