Outokumpu sees slowdown in Q4

Finland-based metals producer Outokumpu has issued guidance for this year’s fourth quarter predicting its earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be lower compared with the prior quarter.

In this year’s third quarter, Outokumpu managed about $90 million in EBITDA. Regarding the current quarter, however, the maker of recycled-content stainless steel and other alloys says, “Due to recent adverse developments in business area Europe, group adjusted EBITDA is expected to be close to break-even or turn negative for the fourth quarter.”

The company operates rolling mills in northern Europe, Germany and Mexico and melt shops in Finland, Sweden and Calvert, Alabama.

Outokumpu says its prediction for narrow or a lack of profits this quarter “is driven by the weaker than expected stainless steel market, longer than planned annual maintenance break at the Tornio site in Finland and a negative inventory value impact.”

Overall conditions had the firm earlier predicting its stainless steel shipments in the fourth quarter were expected to remain level at best and decrease by up to 10 compared with the third quarter in the worst case scenario.

Now, writes Outokumpu, it expects shipments “to be closer to the lower end of the given range.”

The company says its fourth quarter 2024 adjusted EBITDA guidance remains lower compared with the third quarter and that it will publish its full year 2024 results Feb. 13, 2025.