Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on OUTOKUMPU OYJ. We currently have 7 research reports from 1 professional analysts.
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Q3 16 : signs of hope
03 Nov 16
Outokumpu released its Q3 16 results. Sales reached €1,419m (-4.6% yoy, +2.9% qoq), EBITDA €119m (vs €3m in Q3 15 and €62m in Q2 16), EBIT €40m (vs €-77m in Q3 15 and €6m in Q2 16) and the net result €13m (vs €-113m in Q3 15 and €-20m in Q2 16). Over 9 months, sales reached €4,183m (-15.5%), EBITDA €227m (vs €123m), EBIT €34m (vs €-113m) and the net result €-48m (vs €-222m). Net debt at the end of Q3 was €1,396m (vs €1,485m in Q2 16 and €2,012m last year).
H1 16 in line, more time needed to reach industry standards
26 Jul 16
Outokumpu has just released H1 16 numbers. Sales reached €2,765m (-20.2%), EBITDA €108m vs €120m (-10%), EBIT €-6m (vs €-36m) and net €-61m (vs €-107m). Net debt at the end of Q2 reached €1,485m (€1,551m in Q1 and €2,116m at year-end 2015. Note the underlying EBIT (i.e. without special items) reached €-25m in H1 vs €-23m in H1 15 and €-20m in Q1 16. Note the top-line is impacted by the SKS disposal. The lfl decline in sales is -14.% (vs -20.2% published).
Rather weak Q1 16 results.
27 Apr 16
Sales reached €1,386m (-21.6%), EBITDA €46m (-29%), underlying EBITDA €38m (-50%), EBIT €-12m (-20%), net result €-41m vs €-45m). Net debt at the end of Q1 stood at €1,551m (vs €2,034 a year ago and €1,610m at the end of Q4 15). For Q2, the group expects stainless steel market conditions to remain challeging, despite some improvement in the US, while the results will be burdened by weak ferrochrome prices. Altogether, Outokumpu expects flat volumes and a similar level of underlying EBIT, while a €40m charge will be booked in redundancy provisions as part of the €100m savings plan.
FY15 in line, while the outlook is cautious
11 Feb 16
Outkumpu released its FY15 results. Sales reached €6,384m (-6.7%), EBITDA totalled €531m (vs €104m), EBIT €228m (vs €-243m) and the net result €86m (vs €-439m). Underlying EBITDA (excluding special items) reached €196m vs €232m in FY14 and EBIT €-132m. Net debt at the end of FY15 was €1.61bn vs €1.974bn a year earlier, after the disposal of SKS. Note the capital gain on this disposal (€409m) is included in the EBITDA and EBIT released which look artificially high. No dividend will be paid.
Tough Q3 15
05 Nov 15
Outokumpu’s Q3 highlights: revenues were down 12.3% sequentially to €1,487m (and -17.4% yoy), EBITDA reached €3m (vs €55m in Q2 and €67m in Q3 14), EBIT was €-77m (vs €-26m in Q2 and €-9m a year ago) and the net result reached €-115m (€-62m in Q2 and €-77m in Q3 14). Net debt at the end of Q3 was €2,012m (vs €2,116m in H1). Note this is before the positive impact of the SKS disposal. Lastly, the group reminded that the CEO Mika Seitovirta will step down and be replaced by Roeland Bann as from 1 January 2016.
Significant disposal in China
19 Oct 15
Outokumpu announced it has signed an agreement with Lujiazui International Ltd regarding Shanghai Krupp Stainless Co. (SKS) in China. SKS is a Shanghai-based joint venture between Outokumpu and Baosteel, holding 60% and 40% respectively. Being part of Outokumpu’s APAC business area, SKS has a cold-rolling capacity of 290,000 tonnes and the mill employs over 450 people.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
GTL transaction not going ahead
01 Dec 16
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.