After four years as Outokumpu’s CEO, I am proud of
what the Outokumpu team has achieved. We are the
leader in sustainable stainless steel with the strongest
balance sheet in the industry. During my tenure, we have
successfully de-risked the company and strengthened
our core businesses, especially in the Americas. We
have built a solid foundation for the third phase of the
strategy. Our target remains to create long-term
shareholder value. Since 2022, we have returned EUR
476 million back to our shareholders.
The company will be in good hands going forward. Kati ter Horst has been appointed as my successor and I wish her every success. Kati has extensive experience working in process industries, and she has been a member of the Outokumpu Board for eight years. Kati and I will ensure a smooth transition.
In the second quarter of 2024, Outokumpu’s adjusted EBITDA increased to EUR 56 million and our operations normalized after the long political strike in Finland. The strike pushed down our adjusted EBITDA by approximately EUR 60 million during the first half of the year.
Our stainless steel deliveries increased by 5% in the second quarter compared to the previous quarter. The scrap market remained tight in spite of low end-product demand. This impacted negatively our profitability throughout the quarter. Despite scrap market tightness, we have not had any issues in sourcing.
In business area Europe, adjusted EBITDA reached EUR 28 million. Stainless steel deliveries increased by 4% compared to the previous quarter. Our improved profitability reflects the gradual market recovery from the low point we saw in the third quarter of 2023.
Despite the continued recovery, the operating environment in Europe remains quite difficult. The European economy is confronted with multiple structural challenges resulting from the war in Ukraine, funding of the green transition and growing de-globalization. To ensure our profit generation in this type of an operating environment, we must accelerate efforts to improve our European cost competitiveness, especially within commodity stainless steel production. We are targeting further cost savings and aiming to optimize our commodity stainless steel production in Finland and Germany. Our mill in Tornio, Finland is the most costefficient mill in Europe with high volumes. We intend to further leverage the structural advantage of clean and price competitive energy in the Nordics. Outokumpu is the market leader in Europe, and we want to secure this position.
In business area Americas, adjusted EBITDA amounted to EUR 21 million while stainless steel deliveries increased by 7%. Profitability was, however, negatively impacted by the increased maintenance work resulting from temporary operational challenges. The market environment softened in the second quarter and imports into Mexico are disrupting the regional supply demand balance. Still, our long-term view on the U.S. market remains highly positive.
Business area Ferrochrome’s adjusted EBITDA was EUR 22 million. The ferrochrome market has improved during the quarter and our position has strengthened as we own the only chromium mine in the EU area with the lowest carbon footprint globally.
Finally, as this is my last quarterly result as Outokumpu’s CEO, I want to thank all of our employees, customers, suppliers and shareholders for the past years together. It has been a great journey. I look forward to seeing the company move into the next phase of growth as the economic cycle picks up. Outokumpu is ready to take full advantage of the next market upturn.
The company will be in good hands going forward. Kati ter Horst has been appointed as my successor and I wish her every success. Kati has extensive experience working in process industries, and she has been a member of the Outokumpu Board for eight years. Kati and I will ensure a smooth transition.
In the second quarter of 2024, Outokumpu’s adjusted EBITDA increased to EUR 56 million and our operations normalized after the long political strike in Finland. The strike pushed down our adjusted EBITDA by approximately EUR 60 million during the first half of the year.
Our stainless steel deliveries increased by 5% in the second quarter compared to the previous quarter. The scrap market remained tight in spite of low end-product demand. This impacted negatively our profitability throughout the quarter. Despite scrap market tightness, we have not had any issues in sourcing.
In business area Europe, adjusted EBITDA reached EUR 28 million. Stainless steel deliveries increased by 4% compared to the previous quarter. Our improved profitability reflects the gradual market recovery from the low point we saw in the third quarter of 2023.
Despite the continued recovery, the operating environment in Europe remains quite difficult. The European economy is confronted with multiple structural challenges resulting from the war in Ukraine, funding of the green transition and growing de-globalization. To ensure our profit generation in this type of an operating environment, we must accelerate efforts to improve our European cost competitiveness, especially within commodity stainless steel production. We are targeting further cost savings and aiming to optimize our commodity stainless steel production in Finland and Germany. Our mill in Tornio, Finland is the most costefficient mill in Europe with high volumes. We intend to further leverage the structural advantage of clean and price competitive energy in the Nordics. Outokumpu is the market leader in Europe, and we want to secure this position.
In business area Americas, adjusted EBITDA amounted to EUR 21 million while stainless steel deliveries increased by 7%. Profitability was, however, negatively impacted by the increased maintenance work resulting from temporary operational challenges. The market environment softened in the second quarter and imports into Mexico are disrupting the regional supply demand balance. Still, our long-term view on the U.S. market remains highly positive.
Business area Ferrochrome’s adjusted EBITDA was EUR 22 million. The ferrochrome market has improved during the quarter and our position has strengthened as we own the only chromium mine in the EU area with the lowest carbon footprint globally.
Finally, as this is my last quarterly result as Outokumpu’s CEO, I want to thank all of our employees, customers, suppliers and shareholders for the past years together. It has been a great journey. I look forward to seeing the company move into the next phase of growth as the economic cycle picks up. Outokumpu is ready to take full advantage of the next market upturn.