PRELIMINARY INFORMATION ON OUTOKUMPU?S F
OUTOKUMPU OYJ STOCK EXCHANGE RELEASE January 30, 2003 at 11.00 am
PRELIMINARY INFORMATION ON OUTOKUMPUS FULL-YEAR 2002 RESULTS
RESULT DEVELOPMENT WEAKER THAN EXPECTED IN THE END OF THE YEAR
Production of stainless steel ran as planned at Outokumpus
subsidiary AvestaPolarit during the last quarter of 2002.
However, more stainless steel deliveries than initially
estimated moved up from December to January. Smaller stainless
steel deliveries, certain one-off items and the fact that the
market situation for non-ferrous metals remained weak turned
Outokumpus result weaker than estimated in the fourth quarter
of 2002.
According to preliminary figures Outokumpu Groups net sales
amounted to EUR 5 558 million in 2002 (2001: EUR 5 324 million)
and operating profit to EUR 267 million (2001: EUR 183
million). Even though profitability was weaker than expected in
the end of the year, profit for the entire year was
significantly better compared to 2001.
The following tables present net sales and operating profit by
business area as well as the volumes of the Groups main
products.
Jan-Dec Jan-Dec
EUR million 2002 2001
Net sales
Stainless Steel 3 002 2 851
Copper Products 1 472 1 403
Metallurgy 1 202 1 207
Other operations 328 472
Intra-group sales (446) (609)
The Group 5 558 5 324
Operating profit
AvestaPolarit 232 139
Amortization of
positive goodwill 1) (28) -
Stainless Steel 204 139
Copper Products 41 45
Metallurgy 20 54
Other operations 18 (53)
Intra-group items (16) (2)
The Group 267 183
1) The amortization of positive goodwill has been increased in
the annual closing to correspond to the annual amortization
level.
Main products Oct-Dec Jul-Sep
1 000 tonnes 2002 2002
Stainless Steel (production) 1)
Coil Products
Steel slabs 435 337
- of which Long Product´s share 115 109
Cold rolling mill production
- cold rolled 201 178
- white hot strip 104 75
Special Products
Ferrochrome 63 59
Tubes and tube fittings 19 13
Quarto plate 25 19
Long products 2) 53 33
Precision strip 5 6
North America
Quarto plate, bar and tubes 17 17
Copper Products (deliveries)
Americas 24 25
Europe 35 34
Automotive Heat Exchangers 21 22
Appliance Heat Exchangers & Asia 19 21
Internal deliveries (1) (2)
Total deliveries 98 100
Order backlog at
the end of the period 60 60
Metallurgy (production)
Zinc 3) 102 94
Blister copper 43 41
Cathode copper 31 27
Mining (mine production)
Zinc in concentrates 4), 5) 42 7
Copper in concentrates 5) - -
Nickel in concentrates 6) 1 1
1) Avesta Sheffield included as of January 23, 2001.
2) Other long products than slabs.
3) Norzink A/S included as of April 1, 2001.
4) Tara put on care and maintenance on November 1, 2001. The
production was resumed in the beginning of September 2002.
5) Pyhäsalmi mine included until December 31, 2001. The mine
was sold to Inmet Mining Corporation on March 19, 2002.
6) Includes the production of Black Swan until June 30, 2002.
The mine was sold to a consortium consisting of Mining Project
Investors and OMG Group on July 1, 2002.
Main products Jan-Dec Jan-Dec
1 000 tonnes 2002 2001
Stainless Steel (production) 1)
Coil Products
Steel slabs 1 594 1 435
- of which Long Product´s share 501 447
Cold rolling mill production
- cold rolled 807 746
- white hot strip 385 324
Special Products
Ferrochrome 248 236
Tubes and tube fittings 70 57
Quarto plate 95 61
Long products 2) 180 167
Precision strip 21 23
North America
Quarto plate, bar and tubes 74 71
Copper Products (deliveries)
Americas 98 95
Europe 145 143
Automotive Heat Exchangers 88 88
Appliance Heat Exchangers & Asia 90 82
Internal deliveries (6) (6)
Total deliveries 415 402
Order backlog at
the end of the period 60 62
Metallurgy (production)
Zinc 3) 380 357
Blister copper 161 169
Cathode copper 115 115
Mining (mine production)
Zinc in concentrates 4), 5) 49 166
Copper in concentrates 5) - 12
Nickel in concentrates 6) 13 26
1) Avesta Sheffield included as of January 23, 2001.
2) Other long products than slabs.
3) Norzink A/S included as of April 1, 2001.
4) Tara put on care and maintenance on November 1, 2001. The
production was resumed in the beginning of September 2002.
5) Pyhäsalmi mine included until December 31, 2001. The mine
was sold to Inmet Mining Corporation on March 19, 2002.
6) Includes the production of Black Swan until June 30, 2002.
The mine was sold to a consortium consisting of Mining Project
Investors and OMG Group on July 1, 2002.
Following Outokumpus rights offering between November 28, 2002
and December 17, 2002, adjusted average number of shares in
2002 was 137 658 458. On December 31, 2002, the number of
shares was 172 516 613 and on January 3, 2003, following the
registration of shares subscribed for in the secondary
subscription, 172 659 119. Outokumpu currently holds 1 406 000
treasury shares, which are excluded when calculating key
figures per share.
It seems rather unlikely that the world economic growth would
accelerate significantly during the early months of 2003 and
this is also felt in the metals market. In general, no
significant changes are expected in prices or demand.
Key factors for the Groups result development in 2003 are the
market situation for stainless steel and successful
commissioning of the new stainless steel capacity.
The market for stainless steel improved during 2002, even
though uncertainty increased towards year-end. No significant
improvement is expected in the next few months. In line with
previous estimates, the market situation is likely to remain
difficult for copper products, zinc and technology sales and is
expected to improve in the second half of 2003, at the
earliest. Outokumpus management believes that the result for
2003 will be better compared to 2002 provided that the world
political situation will not disturb world economy or demand
for metals.
Additional information will be available on February 17, 2003,
as earlier announced, when Outokumpu publishes its financial
statements bulletin for 2002.
OUTOKUMPU OYJ
Corporate Management
Johanna Sintonen
Manager - Investor and Media Relations
tel. +358 9 421 2438, mobile +358 40 530 0778,
fax +358 9 421 2429
e-mail: johanna.sintonen@outokumpu.com
www.outokumpu.com
