AvestaPolarit third quarter weaker than expected

AvestaPolarit third quarter weaker than expected In its second quarter interim report for April-June 2001, AvestaPolarit stated that the short term outlook was uncertain and that production levels would be determined by market demand. Although European cold rolled and quarto plate base selling prices held steady through the July-September third quarter, market demand was below expectations even taking into account the summer holiday effect. Demand was also weak in the USA and Asia. Nickel prices continued to fall during the quarter with average prices in September being about USD 1,600 per tonne below June. This has resulted in a significant adverse price change in stock with a negative impact on third quarter profitability. AvestaPolarit also experienced some production difficulties, partly related to commissioning new facilities in Avesta after the summer shutdown. As a result of the above, net sales in July-September were more than 20 per cent down on the previous quarter and operating profit for the quarter was below expectations at slightly above break-even. The outlook for the remainder of 2001 remains uncertain, with the full consequential effect of the USA events on 11 September still awaited. Additional information will be available when AvestaPolarit Oyj Abp issues its third quarter interim report on 31 October. AVESTAPOLARIT OYJ ABP Katarina Lybeck, Senior VP - Corporate Communications Tel: +46 8 613 3617 or +358 40 503 0750 (mobile) ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/19/20011019BIT00030/bit0001.doc http://www.waymaker.net/bitonline/2001/10/19/20011019BIT00030/bit0001.pdf