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OUTOKUMPU?S THIRD QUARTER RESULTS BETTER THAN EXPECTED

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OUTOKUMPU OYJ  STOCK EXCHANGE RELEASE  OCTOBER 10, 2006 AT 9.00 AM


OUTOKUMPU’S THIRD QUARTER RESULTS BETTER THAN EXPECTED

Outokumpu’s third quarter operating profit will be better than
indicated in the second quarter interim report outlook, totaling
some EUR 230 million excluding Outokumpu Technology. The result
improvement is partly due to improved stainless steel base prices
but even more due to nickel related inventory gains.

The operational result during the third quarter will be better than
during the second quarter (II/2006: operating profit EUR 147 million
excluding Outokumpu Technology). The annual maintenance breaks in
August-September were completed according to plan and stainless
steel deliveries totaled some 393 000 tonnes as expected. However, 
because of strong end-use demand and supply constraints in the 
stainless steel market, the base price increases achieved by 
Outokumpu during the third quarter were higher than expected. 
According to CRU, the average German reference base price for 
cold rolled 304 sheet for the quarter was 1572 EUR/tonne compared to 
EUR 1 342/tonne for the second quarter. The reference base price 
increased from June by EUR 205 to 1 640 EUR/tonne at the 
end of September.

In addition to the operational performance, the rapid and
substantial increase in the price of the alloying metal nickel from
about 20 000 USD/tonne in June to 30 000 USD/tonne towards the end
of the third quarter has resulted in substantial inventory gains due
to timing differences between the alloy surcharge and inventory
turnover. On the other hand, the increase in nickel price has had a
negative impact on working capital and cash flow.

The third quarter interim report and updated guidance will be
published on October 23, 2006.

For further information, please contact:

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

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