Outokumpu - change in segment-based reporting
20 December 2011 at 12.00 pm EET
In October, Outokumpu published its new organisation effective as of 1 January 2012. Outokumpu's operations consist of one type of business, stainless steel. The business is based on the unique nature of highly integrated operations from chrome and ferrochrome to stainless steel products. In the new organisation, the business is steered as one group by the CEO responsible for the operative management and all business operations.
Outokumpu's new organisation is based on three Business Areas: General Stainless, Specialty Stainless and Ferrochrome. The Business Areas are strongly linked both operationally and financially, with significant internal material flows between the Areas, and thus not totally independent. As the Group-level vertical integration is very high it is considered that segment reporting by Business Area does not give a fair view of the performance of a single Business Area and thus, Outokumpu will report its business based on one single segment as of 1 January 2012. On a quarterly basis, Outokumpu will report sales at Business Area level and delivery data at product level. In addition, in the annual accounts geographical information will be provided.
Outokumpu's new organisation is based on three Business Areas: General Stainless, Specialty Stainless and Ferrochrome. The Business Areas are strongly linked both operationally and financially, with significant internal material flows between the Areas, and thus not totally independent. As the Group-level vertical integration is very high it is considered that segment reporting by Business Area does not give a fair view of the performance of a single Business Area and thus, Outokumpu will report its business based on one single segment as of 1 January 2012. On a quarterly basis, Outokumpu will report sales at Business Area level and delivery data at product level. In addition, in the annual accounts geographical information will be provided.
The new Business Areas consist of:
- General Stainless: stainless steel operations in Tornio and the finishing plant in Terneuzen,
- Specialty Stainless: Special Coil (Avesta Works and Nyby), Special Plate, Kloster and Long Products including the Sheffield meltshop, and
- Ferrochrome: the Kemi Chrome Mine and ferrochrome production in Tornio.
- Specialty Stainless: Special Coil (Avesta Works and Nyby), Special Plate, Kloster and Long Products including the Sheffield meltshop, and
- Ferrochrome: the Kemi Chrome Mine and ferrochrome production in Tornio.
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