Finland-based stainless steel producer Outokumpu has announced that it expects to reduce up to 2,500 jobs globally between 2013 and 2017, as part of its intention to significantly reduce its operating expenses and return the company to profitability. In 2013, the company plans to reduce up to 770 jobs globally of which up to 570 in Germany, up to 70 in Sweden and up to 30 in Finland. The planned reductions are related to capacity reductions in Europe, particularly to the previously announced closure of the Krefeld meltshop in Germany, as well as streamlining overlapping activities in sales, production, supply chain and support functions.
According to its financial results for the first quarter of 2013, Outokumpu has reported a net loss of €152 million compared to a net profit of €12 million in the same period of 2012. In the given quarter, Outokumpu recorded an operating loss of €82 million compared to an operating profit of €3 million in the first quarter of 2012. Group sales during the first quarter improved by 70.3 percent year on year to €2.22 billion. In the first quarter of the current year, the company's EBITDA amounted to €12 million, decreasing by 80 percent year on year.
Outokumpu's stainless steel deliveries in the first quarter decreased by 7.25 percent to 703,000 mt compared to the first quarter of the previous year, highlighting the weak economic environment and the price increases implemented by Outokumpu during the first quarter. Outokumpu was able to increase stainless steel prices in Europe despite the weak market, even if not to the full extent targeted.?
