Nordic Business Report-October 23, 2006-Soaring prices boost Q3 profit for Finnish stainless steel company Outokumpu Oyj
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The Finnish stainless steel company Outokumpu Oyj issued on Monday (23 October) its report for the third quarter, reporting a 55% increase in operating profit compared to the second quarter.
The third quarter operating profit increased to EUR231m from EUR149m in the second quarter last year, on the back of higher base prices. In the third quarter last year the operating result amounted to a loss of EUR26.
"Solid rise in base prices and even more so substantial nickel related inventory gains contributed to the significant profit improvement in spite of the lower deliveries," Outokumpu said in its quarterly report.
The demand for stainless steel continued strong, and Outokumpu reported sales of EUR1,447m in the third quarter, up from EUR1,392m in the second quarter and EUR1.063m in the third quarter last year.
Outokumpu said that it expects demand for stainless steel to continue strong, but warned that record high nickel prices will increase alloy surcharges substantially during the coming months.
"This will result in the highest ever stainless steel transaction prices, which may cause uncertainty in the market," Outokumpu warned.
Outokumpu is headquartered in Espoo, Finland. The group has some 11,000 employees in 30 countries. Outokumpu is listed on the Nordic Exchange in Helsinki.
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