”What we are seeing is that distributor destocking has ended or is ending in Europe (...). In America, destocking may still continue in the first quarter but even there (demand) is improving in comparison with the fourth quarter," Outokumpu Chief Financial Officer Pia Aaltonen-Forsell told Reuters. She said some easing in energy costs, aided by the ongoing mild winter, had brought "light on the horizon" for the European economy and its energy-intensive companies, such as Outokumpu.
The group's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 65% on the year to 110 million euros ($118 million) in the final quarter, missing analysts' expectations of 152 million euros in a company-provided poll. Outokumpu said its stainless steel deliveries declined by 18% in the quarter compared to the same period last year, depressed by increased input costs, lower stainless steel volumes and distributors trimming their inventories. It sees inflation persisting in the current quarter. The group's board of directors proposed a regular 2022 dividend of 0.25 euros per share and an additional dividend of 0.10 euros per share due to "exceptionally strong" full-year results. Shares in the company were up around 0.7% in afternoon trade in Helsinki. ($1 = 0.9317 euros) (Reporting by Anne Kauranen in Helsinki and Jagoda Darlak and Louise Rasmussen in Gdansk; Editing by Milla Nissi and Barbara Lewis)
