The third quarter of 2024 marked a significant transition period for Outokumpu, the global stainless steel manufacturer, as new President and CEO Kati ter Horst took the helm on October 1, 2024. The company demonstrated resilience in challenging market conditions, posting an adjusted EBITDA of €86 million, a notable improvement from €51 million in the same period last year.
Outokumpu's operational performance showed mixed results across its business segments. Stainless steel deliveries reached 459,000 metric tons, slightly higher than the previous year's 449,000 metric tons. The company maintained its market leadership positions, ranking first in Europe and second in North America, despite increasing import pressures in both regions affecting steel prices.
The European operations emerged as a particular bright spot, with the business area reporting an adjusted EBITDA of €59 million. The Ferrochrome division also delivered strong results, contributing €29 million to the adjusted EBITDA, benefiting from robust operational performance and sustained demand for low-emission ferrochrome. The company's Kemi mine, the European Union's only chrome mine, continues to maintain the lowest carbon footprint globally.
The Americas segment faced more challenging conditions, with adjusted EBITDA at €5 million and an 8% decrease in deliveries compared to the previous quarter. This decline was attributed to a weakening manufacturing sector and delivery disruptions caused by flooding at the company's Mexico facility. However, management maintains an optimistic long-term outlook for the U.S. market.
Outokumpu's commitment to sustainability remains strong, maintaining a 95% recycled material content, the highest in the industry. This achievement supports the company's position as the industry leader in low carbon footprint operations. The company continues to progress toward its goal of making the Kemi mine the world's first carbon-neutral mine by 2025.
Looking ahead to Q4 2024, Outokumpu expects stainless steel deliveries to decrease by 0-10% compared to Q3, reflecting deteriorating market conditions in both Europe and the Americas. The company also anticipates a €10 million impact on business area Europe's adjusted EBITDA due to planned maintenance in Tornio, Finland.
