Outokumpu AGM - CEO Juha Rantanen comments on stainless markets
Outokumpu Oyj Stock Exchange Release March 28, 2007
Outokumpu AGM - CEO Juha Rantanen comments on stainless markets
Today, in his review at Outokumpu's Annual General Meeting on the Group's 2006
performance, CEO Juha Rantanen also commented on the Group's first quarter 2007
profitability and the current stainless steel market.
In the prevailing favourable market conditions in the first quarter, the Group's
operating profit for the period will be on the record fourth quarter 2006 level,
or even higher.
Currently, the underlying stainless steel demand continues to be strong. Direct
deliveries to end users and project customers are scheduled as far as October
and the mills producing specialty products are producing at full capacity.
However, as to the standard volume products, distributors are more cautious in
placing orders due to their increased inventories, high transaction prices and
increased availability of Asian material, leading to lower order books and
shortened delivery times for the mills.
Due to lower demand from the distribution sector, the standard grades' base
prices have softened from the record high levels of the first months of the
year. Outokumpu will continuously monitor the market development and will adjust
its actions accordingly.
Outokumpu's first quarter results will be published on April 24, 2007.
Profitability guidance for the second quarter will be given in the interim
report.
CEO Juha Rantanen added: "Outokumpu's competitive position has improved due to
the completed cost cutting actions and will further improve as the excellence
programmes are gaining momentum. We are confident of the long-term
attractiveness of the stainless steel market and with the prevailing good base
price levels Outokumpu's earnings potential remains strong."
Further information:
Kari Lassila, SVP - IR and Communications, tel. +358 9 421 2555
kari.lassila@outokumpu.com
Eero Mustala, SVP - Corporate Communications, tel. +358 9 421 2435
eero.mustala@outokumpu.com
OUTOKUMPU OYJ
Corporate Management
Ingela Ulfves
Vice President - Investor Relations
tel. +358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e.mail: ingela.ulfves@outokumpu.com
www.outokumpu.com