In the guidance given in the first quarter 2012 interim report, the Group’s underlying operational result for the second quarter 2012 was expected to be around break-even or slightly negative. Outokumpu’s second quarter underlying operational result is currently expected to be approximately EUR -40 million.
Continued economic uncertainty in Europe, the decline in the nickel price and destocking among distributors in the second quarter resulted in weaker than anticipated product and geographic mix and slightly lower stainless steel delivery volumes. Additionally somewhat increased production costs have had a negative impact on profitability.
The Group’s operating loss, including raw material-related inventory losses and non-recurring items, is expected to be approximately EUR 80 million in the second quarter. As stated in the guidance given in the first quarter 2012 interim report, Outokumpu expects marginal raw material-related inventory losses in the second quarter. In addition, non-recurring items in the second quarter include a loss from the divestment of the Group’s Brass operations, costs from the Inoxum transaction and impairments from the divestment of stock locations.
