Correction: Outokumpu's Annual Accounts Bulletin 2011 - a year of restructuring
Mittwoch, 01.02.2012 12:20 von GlobeNewswire
CORRECTION TO OUTOKUMPU'S TODAY AT 8.30 AM EET ANNOUNCED ANNUAL ACCOUNTS BULLETIN 2011. THE RELEASE DID NOT INCLUDE THE GROUP KEY FIGURES-TABLE.
FINANCIAL STATEMENT BULLETIN
1 February 2012 at 1.15 pm EET
Year 2011 highlights
- Underlying operational result some EUR -66 million (2010: some EUR -91 million)
- Operating loss EUR 260 million (2010: EUR -83 million) including raw material-related inventory losses of some EUR 43 million (2010: gains of some EUR 26 million) and net non-recurring items of EUR -151 million (2010: EUR -17 million).
- Strong cash flow at EUR 338 million (2010: EUR -497 million).
- Stainless steel deliveries increased by 6% and totalled 1 391 000 tonnes (2010: 1 315 000 tonnes).
- Significant restructuring actions taken to improve cash flow, profitability and strengthen the balance sheet.
- The Board is proposing that no dividend be paid for 2011 (2010: EUR 0.25).
| Group key figures | ||||||
| IV/11 | III/11 | IV/10 | 2011 | 2010 | ||
| Sales | EUR million | 1 125 | 1 231 | 1 162 | 5 009 | 4 229 |
| EBITDA | EUR million | -13 | 4 | -4 | 80 | 172 |
| Operating profit | EUR illion | -71 | -53 | -85 | -260 | -83 |
| - excluding non-recurring | ||||||
| items | EUR million | -58 | -53 | -68 | -109 | -66 |
| - underlying operational | ||||||
| result 1) | EUR million | -34 | -15 | -68 | -66 | -91 |
| Profit before taxes | EUR million | -134 | -157 | -86 | -253 | -143 |
| - excluding non-recurring | ||||||
| items | EUR million | -108 | -157 | -78 | -318 | -135 |
| Net profit for the period | EUR million | -118 | -135 | -91 | -186 | -124 |
| - excluding non-recurring | ||||||
| items | EUR million | -92 | -135 | -83 | -244 | -115 |
| Earnings per share | EUR | -0.62 | -0.74 | -0.50 | -0.99 | -0.68 |
| - excluding non-recurring | ||||||
| items | EUR | -0.48 | -0.74 | -0.45 | -1.31 | -0.63 |
| Return on capital employed | % | -7.4 | -5.3 | -8.0 | -6.5 | -2.1 |
| - excluding non-recurring | ||||||
| items | % | -6.1 | -5.3 | -6.4 | -2.7 | -1.7 |
| Net cash generated from | ||||||
| operating activities | EUR million | 132 | 282 | 18 | 338 | -497 |
| Capital expenditure | EUR million | 95 | 67 | 48 | 255 | 161 |
| Net interest-bearing debt | ||||||
| at end of period | EUR million | 1 720 | 1 730 | 1 837 | 1 720 | 1 837 |
| Debt-to-equity ratio at | ||||||
| end of period | % | 82.5 | 79.7 | 77.3 | 82.5 | 77.3 |
| Stainless steel deliveries | 1 000 tonnes | 323 | 340 | 336 | 1 391 | 1 315 |
| Stainless steel | ||||||
| base price 2) | EUR/tonne | 1 137 | 1 150 | 1 213 | 1 181 | 1 252 |
| Personnel at the | ||||||
| end of period 3) | 8 253 | 8 421 | 8 431 | 8 253 | 8 431 | |
| 1) Operating profit excluding raw material-related inventory | ||||||
| gains/losses and non-recurring items, unaudited. | ||||||
| 2) Stainless steel: CRU - German base price (2 mm cold rolled 304 sheet). | ||||||
| 3) Personnel reported as head count. Up to 31 December 2010 reported as | ||||||
| full-time equivalent. Comparative figures restated. | ||||||
Fourth-quarter 2011 highlights
Underlying operational result some EUR -34 million (III/2011: EUR -15 million).
Operating loss EUR 71 million (III/2011: EUR -53 million) including raw material-related inventory losses of some EUR 24 million (III/2011: some EUR -38 million) and net non-recurring items of EUR -13 million (III/2011: none).
Financial income and expenses include EUR -33 million expenses from the fair valuation of the Group's stake in Talvivaara Sotkamo and the sale of Nordic Brass.
Strong cash flow at EUR 132 million (III/2011: EUR 282 million).
Stainless steel deliveries at 323 000 tonnes (III/2011: 340 000 tonnes).
The Group's underlying operational result in the fourth quarter weakened to some EUR -34 million primarily as a result of lower delivery volumes and slightly lower base prices. The positive impact of an improved mix was offset by costs being somewhat higher. Operating loss in the fourth quarter was EUR 71 million. Net cash from operating activities in the fourth quarter remained strong and totalled EUR 132 million. The main contributor to this strong cash flow was further reductions in working capital which resulted in the main from reduced inventories and lower metal prices. EUR 161 million of cash was released from working capital in the fourth quarter. Outokumpu's gearing at the end of the year increased to 82.5%. The positive impact of strong cash flow was offset by capital expenditure and the net loss. Net interest-bearing debt was relatively unchanged and totalled EUR 1 720 million at the end of the fourth quarter.
SHORT-TERM OUTLOOK
Following a softening in demand for stainless steel in the fourth quarter of 2011, demand for standard grades began to show signs of improvement in the new-year with distributor purchasing supported by a slight increase in the nickel price. However, no significant change has been seen in underlying demand. Lead times are currently normal at 6-8 weeks. As a result of the destocking that occurred during the fourth quarter of 2011, distributor inventories in Europe are estimated to be below normal levels.
Outokumpu's order intake has been encouraging in the beginning of the year. Based on current levels of order intake, Outokumpu's delivery volumes in the first quarter of 2012 are expected to be clearly above levels seen in the fourth quarter of 2011.
Following the decline in base prices in the fourth quarter, Outokumpu has been able to increase prices slightly in both standard and special grades. The resulting impact on the Group's average base prices will be visible towards the end of the first quarter.
Higher delivery volumes and slightly higher base prices are expected to lead to Outokumpu's underlying operational result*) being around break-even or slightly positive in the first quarter of 2012. At current metal prices, marginal raw-material related inventory gains are expected. Outokumpu's operating result in the first quarter of 2012 might be impacted by non-recurring items associated with the Group's ongoing efficiency improvement programmes.
*) Underlying operational result=operating profit/loss excluding raw material-related inventory gains/losses and non-recurring items.
CEO Mika Seitovirta:
"Outokumpu's business results continued to be unsatisfactory in the last quarter of 2011. The challenging economic environment continued to limit market demand. I am however pleased with the progress we have made in improving our cash flow and restructuring our organisation to enable sustainable profitability. The new management team and organisational structure now in place will accelerate the transformation of Outokumpu during 2012. Our two major investment projects - capacity expansions of ferrochrome and quarto plate are both on time and budget - and will prove the Group with a platform for long term growth."
For further information, please contact:
Ingela Ulfves
VP - Investor Relations and Financial Communications
tel. +358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com
Kari Tuutti, SVP - Communications, IR and Marketing
tel. +358 9 421 2432, mobile +358 40 717 0830
kari.tuutti@outokumpu.com
Esa Lager, CFO
tel. +358 9 421 2516
esa.lager@outokumpu.com
Investor and analyst call today at 10.00 am EET
PLEASE NOTE: The earlier announced combined news conference, conference call and live webcast today at 12.00 EET at restaurant Bank in Helsinki has been cancelled.
Outokumpu will host an investor and analyst conference call and live webcast concerning the transaction and the Outokumpu 2011 annual accounts on 1 February 2012 at 10.00 am EET (8.00 am GMT, 9.00 am CET). To participate, see further details at www.outokumpu.com/Investors.
To participate via conference call, please dial in 5-10 minutes before the beginning of the event:
Finland +358 (0)9 2310 1619
Germany +49 (0)69 2999 3285
UK +44 (0)20 3106 7162
Sweden +46 (0) 8 5593 6763
Participant code 9353419
Password Outokumpu
Outokumpu and ThyssenKrupp joint press conference and live webcast today at 12.00 am EET
Outokumpu and ThyssenKrupp will hold a joint press conference, conference call and live webcast on 1 February 2012 at 12.00 noon EET (5.00 am EST, 10.00 am GMT, 11.00 am CET) at the Hilton Dusseldorf Hotel, address: Georg-Glock-Strasse 20, 40474 Düsseldorf, Germany.
To participate via conference call, please dial in 5-10 minutes before the beginning of the event:
Finland +358 (0)9 2310 1618
Germany +49 (0)30 3001 90531
UK +44 (0)20 7660 0009
Sweden +46 (0)8 5065 3933
Password Outokumpu
If you wish to listen to the conference in English, please use the following confirmation code: 6345244
If you wish to listen to the conference in German, please use the following confirmation code: 4654948
The press conference can be viewed live via Internet at www.outokumpu.com/media or www.thyssenkrupp.com. An on-demand webcast of the press conference will be available as of 1 February 2012 at www.outokumpu.com/inoxum
Outokumpu contacts
Media interview requests - international
Tel. +49 (69) 2400 5533
Media interview requests - Finland
Tel. +358 (0)9 421 2432
Investor and analyst enquiries
Ingela Ulfves - tel. +358 (0)40 515 1531
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Source: Outokumpu Oyj via Thomson Reuters ONE