(Adds delivery volumes and context in paragraphs 3-7)
May 9 (Reuters) - Finnish stainless steel maker
Outokumpu on Tuesday reported higher than expected
first-quarter core earnings, as it managed to keep costs under
control despite weaker volumes.
The company's adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) fell 42% to 204 million
euros ($224.56 million) in the January-March period, but beat
analysts' estimate of 144.5 million euros in a company-provided
poll.
The group said distributors continued destocking in the
first quarter in Americas and Europe, which negatively impacted
delivery volumes.
Outokumpu's stainless steel deliveries declined by 17%
year-on-year to 505,000 tonnes, but were up 12% from the last
quarter of 2022.
The company had seen its demand dip at the end of last year
as a fallout of Europe's energy crisis put pressure on steel
prices, but has said would start recovering in early 2023.
The World Steel Association upgraded its forecast for global
steel demand in April, expecting it to rise by 2.3% this year.
Stainless steel deliveries in the second quarter are
expected to remain stable compared to the first quarter, the
group said.
($1 = 0.9084 euros)
(Reporting by Jagoda Darlak in Gdansk; Editing by Milla Nissi)
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