DJ Outokumpu Raises 3Q Ebitda Guidance on Higher Steel Prices, Shares Rise
By Ed Frankl
Shares in Finnish stainless-steel producer Outokumpu Oyj rose on Tuesday after it said it will report higher third-quarter earnings than previously expected.
The Helsinki-based company said adjusted earnings before interest, taxes, depreciation, and amortization for the period rose from the second quarter after realized prices for stainless steel increased by more than expected.
Outokumpu said it had previously expected adjusted Ebitda for the three months to the end of September to be at a similar level as for 2Q, at around 223 million euros ($257.7 million).
At 1000 GMT, shares were up 3.6% to EUR5.40.
The ferrous-metal manufacturer said its 3Q volume guidance was in line, with stainless steel deliveries down 8% on quarter.
U.S. investment bank Jefferies, which on Monday upgraded its rating for Outokumpu to hold from underperform, said the raised guidance supported read across to steelmakers Acerinox SA and Aperam SA. Shares in Acerinox on Tuesday were up 1.3%, while Aperam stock was up 0.1%.
Meanwhile, other European steel producers are reversing Monday's gains, with ArcelorMittal and Thyssenkrupp AG down 2.1% and 2.2%, respectively, in Tuesday trade.
Outokumpu said it will publish full quarterly results on Nov. 4.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
October 12, 2021 06:30 ET (10:30 GMT)
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