core sector communique

Outokumpu Oyj - restatement of financial information of the Group's discontinued operations

Outokumpu has transformed itself into a pure stainless steel producer over the years. Following the sale of the Group's copper tube assets in 2008, the brass rod operations have been Outokumpu's only remaining non-stainless business. The brass rod operations have been classified as discontinued operations (according to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations). It comprises two brass-producing units, one in Sweden and one in the Netherlands, and employs some 150 people. Outokumpu has an intention to exit the business.

 

Due to its marginal size within the Group, the business has now been reclassified and consolidated into Other operations segment in Continuing Operations. The impact of the brass rod operations on the Group's EPS was EUR -0.02 in 2009. Following the reclassification, Outokumpu does not any more present continuing and discontinued operations separately in its financial information.

 

The tables attached present restated comparable financial figures of Outokumpu Group for 2009 and 2010 following the reclassification.

 

Key figures by quarter
EUR million		I/09		II/09			III/09		IV/09
Sales		688		623			595		736
Operating profit		-249		-96			-66		-31
Operating profit margin, %		-36.2		-15.4			-11.0		-4.2
EBITDA		-197		-43			2		26
Return on capital employed, %		-27.4		-11.3			-7.6		-3.5
Return on equity, %		-28.0		-13.8			-9.0		-1.0
Capital employed at end of period		3 382		3 426			3 464		3 642
Net interest-bearing
debt at end of period		831		929			1 018		1 191
Equity-to-assets ratio
at end of period, %		51.3		52.2			50.8		50.6
Debt-to-equity ratio
at end of period, %		32.6		37.2			41.6		48.6
Earnings per share, EUR		-1.04		-0.48			-0.31		-0.04
Average number of shares
outstanding, in thousands 1)		180 413		180 955			180 963		180 963
Equity per share
at end of period, EUR		14.09		13.79			13.51		13.54
Number of shares outstanding
at end of period, in thousands 1)		180 953		180 963			180 963		180 970
Capital expenditure		63		46			56		83
Depreciation		52		53			53		56
Deliveries,
1 000 tonnes		247		268			238		277
Average personnel for the period		8 488		8 180			7 923		7 771
EUR million		I/10		II/10			III/10
Sales		929		1 125			1 014
Operating profit		-21		72			-49
Operating profit margin, %		-2.3		6.4			-4.8
EBITDA		35		129			12
Return on capital employed, %		-2.3		7.3			-4.6
Return on equity, %		-3.4		7.2			-9.1
Capital employed at end of period		3 719		4 187			4 275
Net interest-bearing
debt at end of period		1 302		1 696			1 831
Equity-to-assets ratio
at end of period, %		47.3		43.6			42.8
Debt-to-equity ratio
at end of period, %		53.9		68.1			74.9
Earnings per share, EUR		-0.11		0.24			-0.31
Average number of shares
outstanding, in thousands 1)		181 245		181 907			181 917
Equity per share
at end of period, EUR		13.28		13.68			13.43
Number of shares outstanding
at end of period, in thousands 1)		181 897		181 915			181 917
Capital expenditure		28		45			40
Depreciation		56		57			61
Deliveries,
1 000 tonnes		333		339			307
Average personnel for the period		7 752		8 357			8 401
1) The number of own shares repurchased is excluded.
Income statement by quarter
EUR million	I/09		II/09		III/09	IV/09		2009
Sales
General Stainless	476		501		496	592		2 065
of which intersegment sales	97		100		107	117		421
Specialty Stainless	371		278		258	332		1 239
of which intersegment sales	75		67		64	87		293
Other operations	75		64		64	70		273
of which intersegment sales	61		52		52	55		221
Intra-group sales	-233		-220		-224	-259		-935
Total sales	688		623		595	736		2 641
Operating profit
General Stainless	-157		-52		-38	-12		-259
Specialty Stainless	-82		-37		-21	-10		-149
Other operations	-12		-6		-5	-11		-34
Intra-group items	2		-0		-3	2		1
Total operating profit	-249		-96		-66	-31		-441
Share of results
in associated companies	-3		-0		-6	-3		-13
Financial income and expenses	0		-11		-11	-4		-25
Profit before taxes	-251		-107		-82	-38		-479
Income taxes	64		20		26	32		143
Net profit for the period	-187		-87		-56	-6		-336
Attributable to:
The owners of the parent	-187		-87		-55	-7		-336
Non-controlling interests	-0		-0		-0	0		-0
EUR million	I/10		II/10		III/10
Sales
General Stainless	754		962		860
of which intersegment sales	138		214		189
Specialty Stainless	367		469		397
of which intersegment sales	91		122		86
Other operations	102		100		99
of which intersegment sales	65		70		67
Intra-group sales	-295		-407		-342
Total sales	929		1 125		1 014
Operating profit
General Stainless	-2		75		-52
Specialty Stainless	-21		22		-14
Other operations	2		-14		10
Intra-group items	-1		-10		8
Total operating profit	-21		72		-49
Share of results
in associated companies	-7		-2		-5
Financial income and expenses	-4		-6		-34
Profit before taxes	-32		64		-88
Income taxes	12		-20		32
Net profit for the period	-21		44		-56
Attributable to:
The owners of the parent	-21		44		-56
Non-controlling interests	-0		0		-0
Segment information
Other operations
EUR million	I/09		II/09		III/09	IV/09		2009
Sales	75		64		64	70		273
Operating profit	-12		-6		-5	-11		-34
Operating capital at
the end of period	116		257		240	250		250
Average personnel
for the period	679		675		671	647		668
EUR million	I/10		II/10		III/10
Sales	102		100		99
Operating profit	2		-14		10
Operating capital at
the end of period	184		299		249
Average personnel
for the period	653		667		669

OUTOKUMPU OYJ

 

Outokumpu is a global leader in stainless steel with the vision to be the undisputed number one. Customers in a wide range of industries use our stainless steel and services worldwide. Being fully recyclable, maintenance-free, as well as very strong and durable material, stainless steel is one of the key building blocks for sustainable future. Outokumpu employs some 7 500 people in more than 30 countries. The Group's head office is located in Espoo, Finland. Outokumpu is listed on the NASDAQ OMX Helsinki.