Outokumpu Annual Accounts Bulletin 2009 - exceptional year with heavy losses but strong cash flow

(Thomson Reuters ONE) - FINANCIAL STATEMENT BULLETINFebruary 3, 2010 9.00 am EETYear 2009 highlights- Operating profit was EUR -438 million (2008: EUR -63 million), underlyingoperational result some EUR -340 million (2008: EUR 305 million)- Strong cash flow of EUR 198 million due to working capital reduction- Balance sheet remained relatively strong, gearing at 48.2% (2008: 38.4%), wellbelow target of less than 75%- The Board of Directors is proposing a dividend of EUR 0.35 per share (2008:EUR 0.50)- Cost cutting programme delivering EUR 185 million of savings, ahead of planFourth quarter 2009 highlights- Operating profit of EUR -29 million (III/2009: EUR -65 million)- EBITDA EUR 26 million, operative cash flow EUR -108 million- No major raw material-related inventory gains, underlying operational resultEUR -29 million (III/2009: EUR -82 million)- Stainless steel deliveries at 277 000 tons as a result of weak demand Group key figures     IV/09 III/09 IV/08 2009 2008--------------------------------------------------------------------------- Sales EUR million 728 587 966 2 611 5 474 Operating profit EUR million -29 -65 -271 -438 -63 EBITDA EUR million 26 2 -217 -212 149 Non-recurring items in operating profit EUR million - -15 -17 -20 -83 Profit before taxes EUR million -36 -81 -298 -474 -134 Non-recurring items in financial income and expenses EUR million - - -9 - -21 Net profit for the period from continuing operations EUR million -4 -55 -228 -332 -110 Net profit for the period EUR million -6 -56 -233 -336 -189 Earnings per share from continuing operations EUR -0.03 -0.30 -1.27 -1.83 -0.61 Earnings per share EUR -0.04 -0.31 -1.30 -1.86 -1.05 Return on capital employed % -3.3 -7.6 -26.8 -11.7 -1.6 Net cash generated from operating activities 1) EUR million -108 -10 205 198 664 Capital expenditure, continuing operations EUR million 82 55 129 245 544 Net interest-bearing debt at end of period EUR million 1 183 1 014 1 072 1 183 1 072 Debt-to-equity ratio at end of period % 48.2 41.4 38.4 48.2 38.4 Stainless steel deliveries 1 000 tons 277 238 261 1 030 1 423 Stainless steel base price 2) EUR/ton 1 297 1 307 1 045 1 161 1 185 Personnel at the end of period, continuing operations   7 606 7 699 8 471 7 606 8 471--------------------------------------------------------------------------- 1) Cash flows presented for continuing operations 2) Stainless steel: CRU - German base price (2 mm cold rolled 304 sheet).SHORT-TERM OUTLOOKNo major improvement in the underlying demand for stainless steel is yetvisible. Distributors' cautious buying behaviour continued over the year-end.During the past few weeks, order intake has however been more encouraging. Leadtimes on standard grades for mill-deliveries are normal at 6-8 weeks. Inventorylevels at distributors in Europe are estimated to be at normal levels.Outokumpu's delivery volumes of stainless steel in the first quarter areexpected to be at the same level or slightly higher than in the fourth quarterof 2009 (277 000 tons). Base prices began to decline during the fourth quarter2009 but stabilized around the year-end. Thus, Outokumpu's average base pricesfor all flat products in the first quarter of 2010 are expected to be 50-100EUR/ton lower than the average in the fourth quarter. Currently Outokumpu seespotential for some base price increases.Outokumpu's underlying operational result in the first quarter is expected to beat the same level or somewhat weaker than in the fourth quarter of 2009. Ifmetal prices remain at current levels, no major raw material-related inventorygains or losses are anticipated. Cash flow is expected to remain negative in thefirst quarter without any major impact on gearing, which will remain well belowthe Group's set maximum level of 75%.CEO Juha Rantanen:"Year 2009 was a very difficult one for the stainless steel industry. Dramaticdrop of end demand, representing an estimated 26% decline in Europe, had a majornegative impact on Outokumpu. We were successful in reducing our costs, however,this effort was not sufficient to compensate for the volume decline. In spite ofexternal uncertainties, we stay firm with our plans. Priorities for 2010 areclear; restoring profitability, continued safety improvement, strategyimplementation and delivering of the Excellence Programmes. These longer terminitiatives build the foundation for our future results."The attachments present the Management analysis of the fourth quarter 2009operating result and a summary of the Review by the Board of Directors forJanuary-December 2009 as well as extracts from the financial statements.All fullyear figures are audited.For further information, please contact:P?i Lindqvist, SVP - Communications and IRtel. +358 9 421 2432, mobile +358 40 708 5351paivi.lindqvist(at)outokumpu.com Ingela Ulfves, VP - Investor Relations and Financial Communicationstel. +358 9 421 2438, mobile +358 40 515 1531ingela.ulfves(at)outokumpu.com Esa Lager, CFOtel +358 9 421 2516esa.lager(at)outokumpu.com News conference and live webcast today at 1.00 pmA combined news conference, conference call and live webcast concerning theannual accounts 2009 will be held on February 3, 2010 at 1.00 pm EET (6.00 am USEST, 11.00 am UK time, 12.00 pm CET) at Hotel K?, conference room AkseliGallen-Kallela, Pohjoisesplanadi 29, 00100 Helsinki, Finland.To participate via a conference call, please dial in 5-10 minutes before thebeginning of the event:UK: +44 20 3043 2436US & Canada: +1 866 458 4087Sweden: +46 8 505 598 53Password: OutokumpuThe news conference can be viewed live via Internet at www.outokumpu.com.Stock exchange release and presentation material will be available before thenews conference at www.outokumpu.com/InvestorsAn on-demand webcast of the news conference will be available atwww.outokumpu.com as of February 3, 2010 at around 3.00 pm EET.OUTOKUMPU OYJCorporate ManagementIngela UlfvesVP - Investor Relations and Financial Communicationstel. + 358 9 421 2438, mobile +358 40 515 1531ingela.ulfves(at)outokumpu.com www.outokumpu.com MANAGEMENT ANALYSIS - FOURTH QUARTER 2009 OPERATING RESULT Group key figures EUR million   I/08 II/08 III/08 IV/08 2008-------------------------------------------------------------------- Sales General Stainless   1 304 1 222 933 687 4 147 Specialty Stainless   786 778 630 512 2 705 Other operations   64 63 69 62 258 Intra-group sales   -465 -514 -362 -295 -1 636-------------------------------------------------------------------- The Group   1 689 1 549 1 270 966 5 474 Operating profit General Stainless   81 125 -35 -177 -6 Specialty Stainless   42 44 -63 -123 -101 Other operations   -20 4 29 25 38 Intra-group items   -3 1 3 4 6-------------------------------------------------------------------- The Group   100 174 -66 -271 -63 EUR million   I/09 II/09 III/09 IV/09 2009-------------------------------------------------------------------- Sales General Stainless   476 501 496 592 2065 Specialty Stainless   371 278 258 332 1239 Other operations   66 58 56 62 243 Intra-group sales   -233 -220 -224 -259 -935-------------------------------------------------------------------- The Group   679 617 587 728 2611 Operating profit General Stainless   -157 -52 -38 -12 -259 Specialty Stainless   -82 -37 -21 -10 -149 Other operations   -12 -5 -4 -9 -31 Intra-group items   2 0 -3 2 1-------------------------------------------------------------------- The Group   -249 -94 -65 -29 -438 Stainless steel deliveries 1 000 tons   I/08 II/08 III/08 IV/08 2008-------------------------------------------------------------------- Cold rolled   228 192 177 141 739 White hot strip   120 94 64 51 330 Quarto plate   33 35 27 25 120 Tubular products   19 19 16 16 70 Long products   15 15 15 11 55 Semi-finished products   34 35 25 16 109-------------------------------------------------------------------- Total deliveries   449 391 323 261 1 423 1 000 tons   I/09 II/09 III/09 IV/09 2009-------------------------------------------------------------------- Cold rolled   133 145 124 143 545 White hot strip   59 69 66 69 263 Quarto plate   19 18 14 16 67 Tubular products   16 13 12 12 53 Long products   10 9 11 10 40 Semi-finished products   10 14 12 27 63-------------------------------------------------------------------- Total deliveries   247 268 238 277 1030 Market prices and exchange rates     I/08 II/08 III/08 IV/08 2008-------------------------------------------------------------------- Market prices 1) Stainless steel   Base price EUR/t 1 243 1 307 1 143 1 045 1 185   Alloy surcharge EUR/t 1 702 1 888 1 582 1 293 1 616   Transaction price EUR/t 2 945 3 195 2 725 2 338 2 801 Nickel USD/t 28 957 25 682 18 961 10 843 21 111   EUR/t 19 335 16 440 12 599 8 227 14 353 Ferrochrome (Cr-content) USD/lb 1.21 1.92 2.05 1.85 1.76   EUR/kg 1.78 2.71 3.00 3.09 2.63 Molybdenum USD/lb 33.81 33.40 33.75 17.29 29.56   EUR/kg 49.77 47.14 49.45 28.92 44.31 Recycled steel USD/t 393 565 465 181 401   EUR/t 262 361 309 138 273 Exchange rates EUR/USD   1.498 1.562 1.505 1.318 1.471 EUR/SEK   9.400 9.352 9.474 10.234 9.615 EUR/GBP   0.757 0.793 0.795 0.839 0.796--------------------------------------------------------------------     I/09 II/09 III/09 IV/09 2009-------------------------------------------------------------------- Market prices 1) Stainless steel   Base price EUR/t 925 1 117 1 307 1 297 1 161   Alloy surcharge EUR/t 893 634 923 1 049 875   Transaction price EUR/t 1 818 1 751 2 229 2 346 2 036 Nickel USD/t 10 471 12 920 17 700 17 528 14 655   EUR/t 8 036 9 478 12 375 11 860 10 507 Ferrochrome (Cr-content) USD/lb 0.79 0.69 0.89 1.03 0.85   EUR/kg 1.34 1.12 1.37 1.54 1.34 Molybdenum USD/lb 9.15 9.41 15.36 11.76 11.42   EUR/kg 15.49 15.22 23.67 17.54 18.05 Recycled steel USD/t 207 199 236 250 223   EUR/t 159 146 165 169 160 Exchange rates EUR/USD   1.303 1.363 1.430 1.478 1.395 EUR/SEK   10.941 10.781 10.424 10.351 10.619 EUR/GBP   0.909 0.879 0.872 0.905 0.891-------------------------------------------------------------------- 1) Sources of market prices: Stainless steel: CRU - German base price, alloy surcharge and transaction price (2 mm cold rolled 304 sheet), estimates for deliveries during the period. Nickel: London Metal Exchange (LME) cash quotation Ferrochrome: Metal Bulletin - Quarterly contract price, Ferrochrome lumpy chrome charge, basis 52% chrome Molybdenum: Metal Bulletin - Molybdenum oxide - Europe Recycled steel: Metal Bulletin - Steel scrap HMS 1&2 fob RotterdamSlight recovery of volumes for stainless steel continued in EuropeAfter a moderate improvement in the global market conditions for stainless steelin the third quarter of 2009, apparent consumption of flat products in thefourth quarter of 2009 is estimated to have increased a further 6% in Europe butdecreased by 11% globally. In China the decline was 25%. Compared to the fourthquarter of 2008, apparent consumption of flat products is estimated to haveincreased by 24% globally with an increase of 8% in Europe and very stronggrowth of 46% in China. Compared to the third quarter of 2009, fourth-quarterproduction of stainless steel is estimated to have declined by 7% in Europe and10% globally, with production in China down by 15%. Compared to the fourthquarter of 2008, production of stainless is estimated to have been flat inEurope but to have grown by 30% globally, with significant growth of 63% inChina.According to CRU, the average base price for 2mm cold rolled 304 stainless steelsheet in Germany was 1 297 EUR/ton in the fourth quarter (III/2009: 1 307EUR/ton). The alloy surcharge increased somewhat in the fourth quarter and wason average 1 049 EUR/ton (III/2009: 923 EUR/ton). The average transaction priceduring the quarter was 2 346 EUR/ton (III/2009: 2 229 EUR/ton). The pricedifference between Europe and Asia diminished slightly during the review period.(CRU)Among the alloying elements, global demand for nickel in the fourth quarter was7% lower than in the previous quarter. Supplies of nickel market in the lastquarter of 2009 continued to be constrained by production cuts and strikes, andproduction was 3% lower than in the third quarter. Nickel inventories at theLME, however, were at historically high levels. The nickel price traded in15 800 - 19 500 range USD/ton during the quarter and ended the year at 18 480USD/ton. The average nickel price in the quarter was 17 528 USD/ton (III/2009:17 700 USD/ton). In January 2010, the price of nickel was in the range 17 700 -19 000 USD/ton. Compared to the third quarter, global demand for ferrochrome inthe fourth quarter was down by 9% while production was up by 13%. The quarterlycontract price for ferrochrome in the fourth quarter was 1.03 USD/lb (III/2009:0.89 USD/lb) and has preliminarily been settled at 1.01 USD/lb for the firstquarter of 2010. The price of molybdenum also fell and averaged 11.76 USD/lb(III/2009: 15.36 USD/lb) in the fourth quarter. The price of recycled steel was250 USD/ton in the fourth quarter (III/2009: 236 USD/ton).Operating profit in the fourth quarter of 2009Group sales in the fourth quarter totalled EUR 728 million (III/2009: EUR 587million). Deliveries of stainless steel increased by 16% and totalled 277 000tons (III/2009: 238 000 tons). Capacity utilization in the fourth quarter wasslightly above 60%.Operating loss in the fourth quarter totalled EUR 29 million (III/2009: EUR -65million). No major raw material-related inventory gains or losses (III/2009: EUR32 million) are included in the operating loss.  Operating loss in the thirdquarter included some EUR 32 million of raw material-related inventory gains andEUR 15 million of non-recurring write-downs. Underlying operational loss in thefourth quarter improved to EUR 29 million (III/2009: EUR -82 million) mainly asa result of both higher delivery volumes and better prices. Outokumpu's averagebase prices for flat products realized in the fourth quarter increased by 80EUR/ton but were lower than the base prices reported by CRU for German 304sheet.The Group's cost-saving programmes, initiated in December 2008, delivered morethan earlier estimated EUR 150 million. The fixed-cost savings achieved in 2009totalled EUR 185 million, half of which are expected to be sustainable.  SomeEUR 20 million of total cost savings are related to the closure of SheffieldSpecial Strip in the UK.Return on capital employed in the fourth quarter was -3.3% (III/2009: -7.6%).Earnings per share totalled EUR -0.04 (III/2009: EUR -0.31).Net cash from operating activities in continuing operations was negative at EUR-108 million (III/2009: EUR -10 million) mainly because of somewhat higherinventory levels.Capital expenditure in the fourth quarter totalled EUR 82 million (III/2009: EUR55 million).Sales by General Stainless in the fourth quarter totalled EUR 592 million(III/2009: EUR 496 million), and deliveries totalled 250 000 tons (III/2009:221 000 tons). Operating loss was EUR 12 million (III/2009: EUR -38 million) andincludes a total of EUR 12 million of net-positive accounting items recorded atthe year-end. Tornio Works posted a profit of EUR 22 million (III/2009: EUR -44million). The Tornio Works operating profit includes EUR 35 million of positiveaccounting items related to the valuation of raw materials, fuels and supplies.Sales by Specialty Stainless in the fourth quarter totalled EUR 332 million(III/2009: EUR 258 million), and deliveries totalled 87 000 tons (III/2009:75 000 tons). Operating loss was EUR 10 million (III/2009: EUR -21 million).Other operations posted an operating loss of EUR 9 million (III/2009: EUR -4million) in the fourth quarter.Additional restructuring actions at OSTPIn November 2009, Outokumpu decided on further restructuring action withinOutokumpu Stainless Tubular Products (OSTP). The main effect will be the closureof Group operations in Veteli, Finland. Some production lines will be moved toJakobstad in Finland and some to ?nski?vik in Sweden. Fifty people arecurrently employed at Veteli, completion of changes is planned for the end ofthe first quarter of 2010.Events after the review periodAccording to a seismic research report produced by the Geological Survey ofFinland in late 2009, the mineral resources at the Kemi Mine could turn out tobe significantly greater than earlier estimates. The intrusion containingchromium ore extends to a depth of 2-3 kilometres, possibly to four kilometresand the chromitite layer possibly extends to a depth of at least 2-2.5kilometres or more.Proven ore reserves at the Kemi Mine total some 37 million tons and the quantityof mineral resources totals some 87 million tons (estimated to a depth of 1kilometre). The new information indicates the existence of resources sufficientto allow centuries of mining activity even with doubled annual productionvolumes (the previous estimate was 70-80 years). Outokumpu's mineral resourceswill not be updated based on these findings.SUMMARY OF THE REVIEW BY THE BOARD OF DIRECTORS FOR 2009Determined action taken as stainless steel markets hit by the global recession2009 was an exceptional year for the stainless steel industry in many ways. Theglobal recession had a significant impact on the industry, especially in Europe.During the first part of 2009, demand was extremely weak and stainless steelmarkets were characterized by heavy destocking. Some recovery occurred in thesummer but markets softened again towards the end of the year. In 2009, Chinawas the only market in which demand grew and production significantly increased.The very difficult market conditions in 2009 forced Outokumpu to take drasticshort-term measures to cut costs and secure its balance sheet and liquidity.Cost-cutting actions included production cuts and personnel adjustments. Theongoing recession limited progress towards strategic targets and the Grouppostponed the majority of its planned investment programme. Outokumpu's strategyis aimed at achieving a more stable and profitable business model by increasingthe share of sales to end-user and project customers as well as building morestable relationships with key distributor customers. Other objectives includeincreasing the proportion of value-added special grades and products as well asnon-nickel containing grades of stainless steel.Group sales for 2009 totalled EUR 2 611 million (down by 52% from the previousyear) and stainless steel deliveries were 1 030 000 tons, down by 28% from thelevel in 2008. Operating loss totalled EUR 438 million (2008: EUR -63 million)and underlying operational result was EUR -340 million (2008: EUR 305 millionpositive). Net cash from operating activities was good at EUR 198 million (2008:EUR 664 million).Return on capital employed was -11.7% (2008: EUR -1.6%) and gearing was 48.2%(2008: 38.4%). Although Outokumpu's financial target of a return on capitalemployed higher than 13% was not reached, gearing remained below the Group'starget of less than 75%. Earnings per share totalled EUR -1.86 (2008: EUR-1.05). The Board of Directors is proposing to the Annual General Meeting 2010that a dividend of EUR 0.35 per share be paid for 2009 (2008: EUR 0.50).Very weak stainless steel markets with historically low deliveries in EuropeThe global recession resulted in demand for stainless steel being very weak atthe beginning of the year. Heavy destocking along the whole value chain resultedin significant production cuts by producers especially in Europe with capacityutilization at the historically extremely-low levels of 50-55%. Demand forstainless steel mainly from distributors, recovered somewhat in the summer andstabilised towards the end of the year. Metal prices were at very low levels atthe beginning of the year but began to rise after the spring, mainly as a resultof improving demand in China. Base prices, which had fallen to very low levelsin historical terms, began to recover after the first quarter. Compared to2008, apparent consumption of stainless steel in 2009 is estimated to havedecreased by 29% in Europe and by 8% globally. In China, however, apparentconsumption is estimated to have increased by 31%. The average German base pricefor 2mm 304 cold rolled sheet in 2009 was 1 161 EUR/ton, 2% lower than in 2008.The transaction price for stainless steel averaged 2 036 EUR/ton in 2009, 27%lower than in the previous year. The main reason for this was the much lowermetal prices in 2009. (CRU)Sales and deliveries Sales EUR million 2009 2008 2007------------------------------------------------ General Stainless 2 065 4 147 5 321 Specialty Stainless 1 239 2 705 3 456 Other operations 243 258 237 Intra-group sales -935 -1 636 -2 101------------------------------------------------ The Group 2 611 5 474 6 913 Stainless steel deliveries 1 000 tons 2009 2008 2007------------------------------------------------ Cold rolled 545 739 703 White hot strip 263 330 314 Quarto plate 67 120 146 Tubular products 53 70 65 Long products 40 55 54 Semi-finished products 63 109 137------------------------------------------------ Total deliveries 1 030 1 423 1 419Group sales for 2009 declined to EUR 2 611 million (2008: EUR 5 474 million) dueto the very low delivery volumes and lower transaction prices for stainlesssteel. Delivery volumes declined to 1 030 000 tons (2008: 1 423 000 tons). Salesby General Stainless were down by 50% and sales by Specialty Stainless were downby 54%.The European share of Group sales was 74% in 2009 (2008: 78%). Asia and theAmericas accounted for 14% (2008: 8%) and 10% (2008: 11%), respectively.Operating profit EUR million 2009 2008 2007--------------------------------------------------------------------- Operating profit General Stainless -259 -6 220 Specialty Stainless -149 -101 337 Other operations -31 38 21 Intra-group items 1 6 11--------------------------------------------------------------------- Operating profit -438 -63 589 Share of results in associated companies -12 -2 4 Financial income and expenses -25 -69 206--------------------------------------------------------------------- Profit before taxes -474 -134 798 Income taxes 142 24 -138--------------------------------------------------------------------- Net profit, continuing operations -332 -110 660 Net profit, discontinued operations -4 -79 -18--------------------------------------------------------------------- Net profit for the financial year -336 -189 641--------------------------------------------------------------------- Operating profit margin, % -16.8 -1.2 8.5 Return on capital employed, % -11.7 -1.6 13.9 Earnings per share from continuing operations, EUR -1.83 -0.61 3.63 Earnings per share, EUR -1.86 -1.05 3.52Operating loss in 2009 totalled EUR 438 million (2008: EUR -63 million). In2009, net non-recurring items of EUR -20 million were included in the operatingloss (EUR 5 million of restructuring provisions mainly relating to Sweden andEUR 15 million of write-downs from the cancelled melt-shop capacity expansion inAvesta, Sweden). In 2008, non-recurring costs of some EUR 83 million wereincluded in the operating loss. Raw material-related inventory losses of someEUR 78 million are included in the operating profit (2008: some EUR 285million). Underlying operational result for 2009 was some EUR -340 million(2008: EUR 305 million). While extremely-low delivery volumes were the primaryreason for the weak result, a somewhat negative price and product mix and areduced contribution from ferrochrome production also had negative impacts. Thecost savings achieved had a mitigating effect. Loss before tax totalled EUR 474million (2008: EUR -134 million).The Group's cost-saving programmes, initiated in December 2008, delivered morethan earlier estimated EUR 150 million. The fixed-cost savings achieved in 2009totalled EUR 185 million, half of which are expected to be sustainable.  SomeEUR 20 million of total cost savings are related to the closure of SheffieldSpecial Strip in the UK.Capital structure Key financial indicators on financial position EUR million 2009 2008 2007------------------------------------------------------------------- Net interest-bearing debt      Long-term debt 1 038 1 219 1 046      Current debt 705 581 464 Total interest-bearing debt 1 742 1 800 1 510 Interest-bearing assets -548 -711 -589 Net assets held for sale -11 -16 -132------------------------------------------------------------------- Net interest-bearing debt 1 183 1 072 788 Shareholders' equity 2 451 2 794 3 337 Return on equity, % -12.8 -6.2 20.0 Debt-to-equity ratio, % 48.2 38.4 23.6 Equity-to-assets ratio, % 50.6 52.4 56.5 Net cash generated from operating activities 1) -108 664 658 Net interest expenses 22 54 58 1) Cash flows presented for continuing operationsDuring 2009 Outokumpu's net interest-bearing debt increased only marginally byEUR 110 million and totalled EUR 1 183 million at the end of 2009 (Dec31, 2008: EUR 1 072 million). Outokumpu's balance sheet was relatively strong atthe end of the year with gearing at 48.2% (Dec 31, 2008: 38.4%), well below theGroup's target of below 75%. At the end of 2009, the Group's equity-to-assetsratio stood at 50.6%.In June 2009, Outokumpu signed a three-year EUR 900 million revolving creditfacility. This committed credit facility for general corporate purposes replacedthe five-year EUR 1 billion facility signed in June 2005. At the end of 2009this facility was undrawn. In addition, two bilateral long-term revolving creditfacilities amounting to more than EUR 200 million were signed in 2009.Consequently, Outokumpu has committed undrawn credit facilities totalling EUR1.1 billion.Net cash generated from operating activities in continuing operations in 2009was good and totalled EUR 198 million (2008: EUR 664 million). Cash releasedfrom working capital as a result of lower metal prices and reductions ininventory levels totalled EUR 548 million. Cash and cash equivalents totalledEUR 112 million (2008: EUR 224 million) at the end of the year.Capital expenditure and the postponed investment programme Capital expenditure EUR million 2009 2008 2007------------------------------------ General Stainless 129 332 57 Specialty Stainless 93 170 69 Other operations 23 42 64------------------------------------ The Group 245 544 190 Depreciation 211 206 204Capital expenditure by the Group in 2009 totalled EUR 245 million. The largestinvestments in 2009 were the modernization of the No. 2 annealing and picklingline in Tornio, expansion of the service centre in Willich in Germany,establishment of a service centre in China, the doubling of production capacityin special grades at Nyby in Sweden and the expansion of quarto plate productioncapacity in New Castle in the US. The service centre in China is planned tostart operation in the spring 2010 and the investment at New Castle is plannedto be finalized at about the same time.In December 2008 as the global recession had started, Outokumpu decided topostpone almost its entire investment programme worth some EUR 1.5 billion for aperiod of at least 12 months. The programme included an expansion of ferrochromeproduction capacity in Finland, investments in bright-annealed productioncapacity at Tornio Works in Finland, expansion of quarto plate productioncapacity in Degerfors in Sweden, the expansion of melting capacity in Avesta inSweden and the construction of service centres in Europe. In October, a decisionwas made to cancel the investment in expanded melting capacity at Avesta as noneed for additional melting capacity is seen in the medium-term. Continuation ofany project in the Group's investment programme is subject to a separatedecision based on an updated feasibility study. Further decisions on thepostponed investments will be made by the end of 2010.Excluding decisions on any new investment projects, capital expenditure by theGroup in 2010 is expected to be below EUR 200 million. This figure includesannual capital expenditure on maintenance and the finalizing of some ongoinginvestment projects.Personnel adjustmentsAs a response to the very weak demand for stainless steel because of the ongoingrecession, Outokumpu took a number of actions to adjust to the poor marketconditions. Production was cut back heavily and consequent adjustments ofpersonnel numbers through both temporary and permanent layoffs were implemented.In Finland, the low order load resulted in temporary layoffs for most employeesat the Tornio Works. Some 250 employees at the Kemi Mine and the FerrochromeWorks were temporarily laid off from March until the end of September.Approximately 1 600 employees working on other steel production lines,maintenance and support functions were temporarily laid off in sequencesstarting from March. In September, some 700 employees were taken back and theremaining 900 who had been laid off temporarily returned to work in October.Some 50 permanent job reductions have been made in Finland.In Sweden, a total of some 400 job reductions were made in 2009. The number ofworking shifts was reduced and related temporary lay-offs were implemented.In the UK, the closure of Sheffield Special Strip, reduced production in theSheffield melt-shop and actions taken in the service centre and the salescompany resulted in approximately 350 job reductions and temporary adjustmentsdue to reduced working shifts.Approximately 150 job reductions were implemented in other countries.Operational Excellence programsOutokumpu's Operational Excellence programme was launched in 2005 and originallycomprised Production and Commercial Excellence. In 2007, the programme wasexpanded to include Supply Chain Excellence. Targets included improving Groupperformance by EUR 40 million in 2007 and by EUR 80 million in 2008 (compared to2005). The targeted benefits were achieved in both years and benefits totallingEUR 86 million were delivered in 2008. In 2009, the Operational Excellenceprogramme delivered benefits totalling EUR 150 million compared to 2005. Theoriginal target of EUR 200 million by 2009 was not achieved mainly as aconsequence of the very low delivery volumes of stainless steel and the lowermetal prices.The original target of EUR 300 million of benefits in 2010 will not be reachedconsidering the current run-rate of delivery volumes. However, Outokumpu'sOperational Excellence programmes continue to be a high-focus area and theintention is to achieve higher benefits than in 2009 (EUR 150 million).Class actions regarding the sold fabricated copper products businessIn 2003, the European Commission issued its judgment on Outokumpu'sparticipation in a European price-fixing and market-sharing cartel involvingcopper air-conditioning tubes during 1988-2001. A fine of EUR 18 million wasimposed on the Group. In 2004, Outokumpu lodged an appeal with the Court ofFirst Instance for Europe regarding the basis for the calculation and the levelof the fine. According to a decision issued by the court in May 2009, the amountof the fine remains unchanged.In a cartel investigation concerning sanitary copper tubes, the EuropeanCommission issued its judgement in September 2004 and imposed a fine of EUR 36million on the Group for participation in cartel activities. Outokumpu lodged anappeal with the Court of First Instance for Europe in 2004 regarding the levelof the fine. In August 2009, Outokumpu paid the fine of EUR 36 million inadvance. The final decision from the Court of First Instance concerning thesanitary tubes case is expected during 2010.In 2003, Outokumpu booked provisions for fines in both of these cases. Finestotalling EUR 54 million and interest totalling EUR 9 million was paid in 2009.Outokumpu exited the copper fabrication business by divesting a major part ofthe company's business in 2005 and the remainder in April 2008.Customs investigation of exports to Russia by Tornio WorksIn March 2007, Finnish Customs authorities initiated a criminal investigationinto the Group's Tornio Works' export practices to Russia. It was suspected thata forwarding agency based in south-eastern Finland had prepared defective and/orforged invoices regarding the export of stainless steel to Russia. Thepreliminary investigation focused on possible complicity by Outokumpu TornioWorks in the preparation of defective and/or forged invoices by the forwardingagent.In June 2009, the Finnish Customs completed its preliminary investigation andforwarded the matter for consideration of possible charges to the prosecutingauthorities. The process of considering possible charges is expected to becompleted in the spring of 2010.Immediately after the Finnish Customs authorities began their investigations in2007, Outokumpu initiated its own investigation into the trade practicesconnected with stainless steel exports from Tornio to Russia. In June 2007,based on its own investigation, a leading Finnish law firm Roschier AttorneysLtd. concluded that it had not found evidence that any employees of Tornio Worksor the Group had committed any of the crimes alleged by the Finnish Customs.Roschier has subsequently, at Outokumpu's request, examined the preliminaryinvestigation material produced by the Finnish Customs' and concluded that itcontains no evidence that any Outokumpu employees committed forgery or thealleged accounting offences by the Finnish Customs. Outokumpu's Auditor, KPMG OyAb, has also stated that suspicions related to the making of false financialstatements are groundless.Outokumpu has stated that neither the Group nor its personnel have committed anyof the crimes alleged by the Finnish Customs.Risk managementOutokumpu operates in accordance with the risk management policy approved by theBoard of Directors. The risk management policy defines the objectives,approaches and areas of responsibility in risk management activities. Riskmanagement supports the Group's strategy and also helps to define a balancedrisk profile from the perspective of shareholders as well as other stakeholderssuch as customers, suppliers, personnel and lenders. Outokumpu has defined riskto be anything that might have an adverse impact on activities that the companyhas undertaken to achieve its objectives. Risks can thus be threats,uncertainties or lost opportunities that relate to present or future operations.In 2009 risk workshops were implemented with management teams from most of theGroup's business units and several corporate functions such as Energy and LegalAffairs and IPR. Workshops included the identification of different business,operational and financial risks, the evaluation and mitigation of these risks inconnection with strategic planning and performance management processes. Duringthe year, Outokumpu also initiated a systematic crises management programme.Corporate-level crises management teams were trained in the handling ofsituations presenting different challenges.No major damage to Group property or business interruptions occurred in 2009.The most significant risks realised during the year were connected withstructural issues in stainless steel markets and the global recession, with thelatter having an impact on steel markets and also on the Group's willingness andability to implement planned investment projects.Strategic and business risksThe most important identified strategic and business risks include structuralovercapacity and weak market conditions affecting stainless steel production,fierce competition in stainless steel markets and Euro-centricity of Groupoperations.Demand for stainless steel remained depressed in Outokumpu's main servedmarkets. Increased stainless steel production capacity, especially in China, iscreating a situation of gradually developing global overcapacity. Outokumpu hastaken actions to address these strategic and business risks by maintaining costefficiency and delivery reliability in the Group's operations, developing itsdistribution channels and aiming to increase sales to end-users and buildingstable relationships with key distributors. During 2009 Outokumpu also expandedits operations in China by investing in a new service centre in Kunshan inShanghai. Activities at this new facility will focus on special products andgrades and operations will begin in the spring of 2010. Outokumpu continues tostudy ways of strengthening its position outside Europe in future years.Operational risksOperational risks arise as a consequence of inadequate or failed internalprocesses, employee actions, systematic or other events such as naturalcatastrophes and misconduct or crime. Key operational risks include major firesor accidents, variations in production performances, unsuccessful projectimplementation and a lack of progress towards achieving a strong corporateculture and a one-company approach.To minimise damage to property and business interruptions that could result fromfire at Outokumpu's sites, the Group has systematic fire and security auditprogrammes in place. Part of this type of risk is covered by insurances. In2009, some 40 security and fire-safety audits were carried out using the Group'sown resources, often jointly with technical experts from insurers and insurancebrokers. Outokumpu also continued developing its corporate security during 2009with a focus on crisis management.Outokumpu has been systematically developing the performance of its operationsthrough excellence initiatives. Even so, risks associated with not being able toadapt production capacity to meet wide fluctuations in demand can have an impacton the company's business. The Group is mitigating these types of risks in twoways: by expanding its Operational Excellence programmes; and by building onstrong Group-level functions such as Supply Chain Management and Group Sales andMarketing to enhance strategy implementation.Outokumpu's aim is to achieve a strong and unified corporate culture throughoutits organization. For all Group personnel, the approach is to create "OneOutokumpu", but this type of cultural change can take time. While it provides agreat opportunity to increase operational effectiveness by increasingcross-cultural cooperation, corporate cultures that are one-country based or tooindependent can have an adverse effect on progress from an operationalperspective, endangering the achievement of strategic goals. The implementationof strong Group-level functions such as Supply Chain Management and Group Salesand Marketing is a vital component in driving forward the one-company -approach.Due to the global financial crisis and the weakness in stainless steel marketalmost the entire already-announced investment programme was postponed at theend of 2008. Some investments, such as the service centre expansion in Willichin Germany and the establishment of a new service centre in China are howevercontinuing and will be finalized early in 2010. In preparation for the future,Outokumpu is aiming to further develop its project management methods to supportthe implementation of investment projects and to manage risks related to theGroup's entire project portfolio. At the end of the third quarter, Outokumpudecided to permanently cancel the investment project which would have providedadditional melting capacity in Avesta in Sweden.Financial risksFinancial risks include market, liquidity, refinancing, country and credit risk.One consequence of the global economic crisis is that sales-related creditlosses have increased to some extent; but much of these losses are covered bycredit insurance. At the end of 2009, Outokumpu updated its principlesconcerning the management of country and credit risk. Implementation of theseprinciples will take place gradually during 2010.A weak Swedish krona has been mainly beneficial for the Group because of asignificant amount of krona-denominated fixed and variable cost. Changes in theprice of nickel and the value of the US dollar have an impact on Group earnings,cash flows and the balance sheet. Outokumpu also has exposure to changes ininterest rates, credit risk related to certain loan receivables and risksconnected with equity prices.During 2009 Outokumpu hedged part of the forecast risk associated with cash flowin Swedish krona and sterling, hedged against rises in interest rates associatedwith fixed part of financing costs and continued nickel risk hedging to reducethe impacts of any price changes on earnings.Liquidity and refinancing risks are taken into account in capital managementdecisions and, when necessary, in making investment and other businessdecisions. In 2009, Outokumpu signed a three-year revolving credit facility ofEUR 900 million. This facility was fully undrawn at the end of the year.Environment, Health and SafetyEmissions to air and discharges to water remained within permitted limits andthe breaches that occurred were temporary, were identified and caused onlyminimal environmental impact. Outokumpu is not a party in any significantjuridical or administrative proceeding concerning environmental issues, nor isit aware of any realised environmental risks that could have a material adverseeffect on the Group's financial position.At approximately 540 000 tons (2008: 820 000 tons), carbon dioxide emissionsunder the EU Emissions Trading Scheme were at a very-low level in 2009 due toreduced levels of production. During the year, the Group sold 454 000 tons(2008: 1 022 000 tons) of carbon dioxide allowances for EUR 6 million (2008: EUR22 million). Outokumpu's carbon dioxide allowances in the UK, Sweden and Finlandwere proved sufficient for the Group's production.Occupational safety continues to be a major focus area within the Group andOutokumpu has a separate safety function responsible for safety management anddevelopment.In 2009, the lost-time injury rate (i.e. lost-time accidents per million workinghours) was 5.9 (2008: 9.0), slightly higher than the Group's 2009 target of lessthan five. No severe accidents were reported in 2009. The target for 2010 isless than four.Corporate ResponsibilityIn March 2009, Outokumpu was selected as a member of the Kempen/SNS SmallerEurope SRI Universe, a concept launched by Kempen Capital Management. Membershipis only offered to companies with the very highest standards and codes ofpractice in three areas: business ethics, human resources and the environment.In September, the results of the annual review carried out for the Dow JonesWorld and Dow Jones STOXX Sustainability indexes by the Sustainable AssetManagement Group (SAM) were published. Outokumpu retained its membership in bothindices and received the highest possible score in two sustainability criteria:environmental reporting and occupational health and safety.Once again, Outokumpu received an award in 2009 for being Finland's bestcorporate responsibility reporter.Research and DevelopmentGroup expenditure on research and development in 2009 totalled EUR 19 million or0.7% of sales (2008: EUR 20 million and 0.4%). Outokumpu has research centres inTornio in Finland and in Avesta in Sweden. Some process and technologydevelopment work is also carried out in production units. R&D operates in closecooperation with the Group's commercial organization and customers, and directfeedback regarding customer needs serves as input for further productdevelopment. The R&D function employed almost 200 professionals in 2009.Outokumpu also conducts research in collaboration with research institutes anduniversities.In 2009, the main focus was on further developing new low-nickel and nickel-freestainless steels to reducing the effects of volatile nickel prices. Much efforthas been put into developing duplex grades which offer a good combination ofstrength and corrosion resistance. Ideal applications for duplex grades includelarge, heavy-wall tanks, where weight savings of as much as 20% can be achieved.Customers have shown growing interest in LDX 2101®. New applications arecontinually being developed and the production technology has been improved.Non-nickel ferritic grades represent another opportunity to reduce the influenceof the nickel price on raw material costs. Optimum process parameters andproduct properties for standard ferritic grades have been studied intensively atproduction scale. The primary focus has been on surface quality, formability andcorrosion resistance. Four different grades, mostly intended for use in indoorapplications, kitchen utensils, domestic appliances and the transportationsector, are now part of the Group's product portfolio.Cr-Mn-Ni grades (200 series), a third opportunity to reduce the use of nickel,also represent an interesting alternative in many applications. The most commongrade is 201, the chemistry of which has been modified by Outokumpu. Thecorrosion-resistant properties of this grade are almost equal to those ofstandard austenitic 304 (Cr-Ni), and it also features higher strength and goodformability.In application development, the traditional focus has been on the processindustries where stainless steel plays a dominant role in the manufacturing ofindustrial equipment used in the Pulp and Paper, Oil and Gas, Desalination andChemical segments. Outokumpu's R&D experts provide both customers and theGroup's commercial personnel with advice on product properties and materialselection. The 10th edition of the Outokumpu Corrosion Handbook was published inthe autumn. For more than 60 years, the handbook has been a reliable source ofessential information for metallurgists, design engineers and fabricators aroundthe world.In addition to new products and new applications for stainless steel, theGroup's R&D operations focus on innovative manufacturing processes that reducecosts, result in lower emissions, shorten lead times and improve quality levels.The main subject of environmental research in 2009 was slag utilization. Studiesof the properties of different slag products and the development of newapplications continue.Personnel Personnel Dec. 31 2009 2008 2007--------------------------------------- General Stainless 3 753 3 938 3 571 Specialty Stainless 3 361 4 006 4 099 Other operations 492 527 439--------------------------------------- The Group 7 606 8 471 8 108In 2009, the Group's continuing operations employed an average of 7 941 people(2008: 8 551) in some 30 countries. At the end of 2009, the number of peopleemployed by the Group was 7 606 (2008: 8 471). The net decrease in the number ofpeople employed was 865 (2008: increase of 363) caused by actions to adjust tothe very weak stainless steel markets in 2009. Personnel expenses in 2009totalled EUR 446 million (2008: EUR 520 million).Outokumpu's development programmes, including management development programmesand the Production Excellence training programme, continued during 2009. Thefirst eight Stainless Pro Graduates completed their two-year programme andtransferred to new positions within the Group. Seven Stainless Pro Graduates areexpected to complete their training in August 2010.Almost all Group employees participated in Performance and Development Dialoguesin 2009, but the goal of 100% participation was not achieved.The Outokumpu Personnel Forum (OPF) 2009 held its 18th annual meeting in Espoo,Finland. The Group Working Committee appointed by the OPF - a forum forcontinuing dialogue between personnel and management - met six times during2009.The fifth O'People personnel survey was conducted in 2009. The response rate was72% (2008: 75%) and the overall O'People index was almost unchanged at 617(2008: 621).Ideas for fast actions, a web-based survey for Outokumpu employees, wasorganised in the spring. Participants were encouraged to contribute concreteideas on how to get through difficult times, where to cut costs and how toimprove overall Group performance.Organizational change and appointmentsIn December, Mr Kari Parvento was appointed EVP - Group Sales and Marketing anda member of Outokumpu Group's Executive Committee as of May 1, 2010 at thelatest. He will report to CEO Juha Rantanen. Group Sales and Marketing has beenheaded by Mr Bo Annvik, EVP - Specialty Stainless, on a temporary basis sinceFebruary 2009 when Mr Andrea Gatti, former EVP - Group Sales and Marketing atOutokumpu, assumed the role of Corporate Vice President outside the ExecutiveCommittee. Mr Gatti left Outokumpu in December 2009.In addition to his current duties, Mr Pekka Erkkil?EVP - General Stainless,took over management of the Tornio Works in September 2009. At the end of 2009,Mr Erkkil?esigned from Outokumpu Oyj to join Outotec Oyj as of May 1, 2010 atthe latest.Shares and shareholdersAccording to the Nordic Central Securities Depository, Outokumpu's largestshareholders by group at the end of 2009 were the State of Finland throughSolidium Oy (31.1%), foreign investors (28%), Finnish public sector institutions(15.4%), Finnish private households (13.6%), Finnish financial and insuranceinstitutions (6.1%), Finnish corporations (3.4%) and Finnish non-profitorganizations (2.5%).Shareholders that have more than 5% of the shares and votes in Outokumpu Oyj areSolidium Oy (31.1%) and the Finnish Social Insurance Institution (8.1%).At the year-end, Outokumpu's closing share price was EUR 13.26 (2008: EUR8.28), up 60%. The average share price during the year was EUR 11.49 (2008: EUR18.99) with EUR 15.67 (2008: EUR 33.99) as the year's highest price and EUR7.72 (2008: EUR 6.33) as the year's lowest price. At the year-end, the marketcapitalization of Outokumpu Oyj shares totalled EUR 2 413 million (2008: EUR1 502 million). Share turnover in 2009 was significantly lower than in 2008,with 355.1 million shares being traded on the Nasdaq OMX Helsinki Ltd exchange(2008: 511.1 million). The total value of share turnover in 2009 was EUR 4 079million (2008: EUR 9 693 million).Outokumpu's fully paid share capital at the year-end totalled EUR 309 millionand consisted of 182 010 542 shares. The average number of shares outstandingduring 2009 was 180 825 569.Annual General Meeting 2009The 2009 Annual General Meeting (AGM) approved a dividend of EUR 0.50 per sharefor 2008. Dividends totalling EUR 90 million were paid on April 3, 2009.The AGM authorized the Board of Directors to decide to repurchase the Group'sown shares. The maximum number of shares to be repurchased is 18 000 000,currently representing 9.92% of total number of registered shares. Based onearlier authorizations Outokumpu currently holds 1 040 888 of its own shares.The AGM authorized the Board of Directors to decide to issue shares and to grantspecial rights entitling to shares. The maximum number of new shares to beissued through the share issue and/or by granting special rights entitling toshares is 18 000 000, and, in addition, the maximum number of treasury shares tobe transferred is 18 000 000. The authorization includes the right to resolveupon directed share issues. These authorizations are valid 12 months or untilthe next AGM, however no longer than May 31, 2010. To date the authorizationshave not been used.The AGM decided on the number of the Board members, including the Chairman andVice Chairman, to be eight. Evert Henkes, Ole Johansson, Jarmo Kilpel?Victoirede Margerie, Anna Nilsson-Ehle, Leena Saarinen and Anssi Soila were re-electedas members of the Board of Directors, and Jussi Pesonen was elected as a newmember. The AGM re-elected Ole Johansson as Chairman of the Board and AnssiSoila as Vice Chairman of the Board. The AGM also resolved to form aShareholders' Nomination Committee to prepare proposals on the composition andremuneration of the Board of Directors for presentation to the next AGM.At its first meeting, the Board of Directors of Outokumpu appointed twopermanent committees consisting of Board members. Anssi Soila (Chairman), JarmoKilpel?nd Leena Saarinen were elected as members of the Board Audit Committee.Ole Johansson (Chairman), Evert Henkes, Anna Nilsson- Ehle and Jussi Pesonenwere elected as members of the Board Nomination and Compensation Committee.KPMG Oy Ab, Authorized Public Accountants, was re-elected as the Company'sauditor for the term ending at the close of the next AGM.Shareholders' Nomination CommitteeOutokumpu's Annual General Meeting of March 24, 2009 decided to establish aShareholders' Nomination Committee to prepare proposals on the composition ofthe Board of Directors along with director remuneration for the following AnnualGeneral Meeting. The representatives of Outokumpu's three largest shareholdersregistered in the Finnish book-entry securities system on November 2, 2009,which accepted the assignment. The Shareholders' Nomination Committee ofOutokumpu consists of the following three shareholders: Solidium Oy (KariJ?inen, CEO), The Social Insurance Institution of Finland (Jorma Huuhtanen,Director General) and Ilmarinen Mutual Pension Insurance Company (Harri Sailas,CEO). Kari J?inen acts as Chairman the Committee. Ole Johansson, the Chairmanof Outokumpu's Board of Directors, and Evert Henkes, member of Outokumpu's Boardof Directors, serve as expert members. The Shareholders' Nomination Committee isrequired to submit its proposals to the Board of Directors of the company nolater than February 1, 2010.Events after the review periodAccording to a seismic research report produced by the Geological Survey ofFinland in late 2009, the mineral resources at the Kemi Mine could turn out tobe significantly greater than earlier estimates. The intrusion containing Kemichromium ore extends to a depth of 2-3 kilometres, possibly to four kilometresand the chromitite layer possibly extends to a depth of at least 2-2.5kilometres or more.Proven ore reserves at the Kemi Mine total some 37 million tons and the quantityof mineral resources totals some 87 million tons (estimated to a depth of 1kilometre). The new information indicates the existence of resources sufficientto allow centuries of mining activity even with doubled annual productionvolumes (the previous estimate was 70-80 years). Outokumpu's mineral resourceswill not be updated based on these findings.SHORT-TERM OUTLOOKNo major improvement in the underlying demand for stainless steel is yetvisible. Distributors' cautious buying behaviour continued over the year-end.During the past few weeks, order intake has however been more encouraging. Leadtimes on standard grades for mill-deliveries are normal at 6-8 weeks. Inventorylevels at distributors in Europe are estimated to be at normal levels.Outokumpu's delivery volumes of stainless steel in the first quarter areexpected to be at the same level or slightly higher than in the fourth quarterof 2009 (277 000 tons). Base prices began to decline during the fourth quarter2009 but stabilized around the year-end. Thus, Outokumpu's average base pricesfor all flat products in the first quarter of 2010 are expected to be 50-100EUR/ton lower than the average in the fourth quarter. Currently Outokumpu seespotential for some base price increases.Outokumpu's underlying operational result in the first quarter is expected to beat the same level or somewhat weaker than in the fourth quarter of 2009. Ifmetal prices remain at current levels, no major raw material-related inventorygains or losses are anticipated. Cash flow is expected to remain negative in thefirst quarter without any major impact on gearing, which will remain well belowthe Group's set maximum level of 75%.Board of Directors' proposal for profit distributionIn accordance with the Board of Directors' established dividend policy, thepayout ratio over a business cycle should be at least one-third of the Group'sprofit for the period with the aim to have stable annual payments toshareholders. In its annual dividend proposal, the Board of Directors will, inaddition to financial results, take into consideration the Group's investmentand developing needs.The Board of Directors is proposing to the Annual General Meeting to be held onMarch 30, 2010 that a dividend of EUR 0.35 per share be paid from the parentcompany's distributable funds on December 31, 2009 and that any remainingdistributable funds be allocated to retained earnings. The suggested dividendrecord date is April 6, 2010 and the dividend will be paid on April 13, 2010.According to the Group's financial statements on December 31, 2009,distributable funds of the parent company totalled EUR 850 million. No materialchanges have taken place in the company's financial position after the balancesheet date and the proposed dividend does not compromise the company's financialstanding.In Espoo, February 3, 2010Board of DirectorsOutokumpu is a global leader in stainless steel with the vision to be theundisputed number one. Customers in a wide range of industries use our stainlesssteel and services worldwide. Being fully recyclable, maintenance-free, as wellas very strong and durable material, stainless steel is one of the key buildingblocks for sustainable future. Outokumpu employs some 7 500 people in more than30 countries. The Group's head office is located in Espoo, Finland. Outokumpu islisted on the NASDAQ OMX Helsinki.www.outokumpu.com STATEMENT OF COMPREHENSIVE INCOME (all full year figures are audited) Income statement   Jan- Jan- Oct- Oct-   Dec Dec Dec Dec EUR million 2009 2008 2009 2008-------------------------------------------------------------------------------- Continuing operations: Sales 2 611 5 474 728 966 Other operating income 28 57 11 37 Costs and expenses -3 044 -5 552 -760 -1 267 Other operating expenses -32 -42 -8 -8 ---------------------------- Operating profit -438 -63 -29 -271 Share of results in associated companies -12 -2 -3 -1 Financial income and expenses   Interest income 17 20 4 5   Interest expenses -38 -74 -10 -21   Market price gains and losses -2 -2 2 -0   Other financial income 5 11 1 0   Other financial expenses -6 -24 -1 -10 ---------------------------- Profit before taxes -474 -134 -36 -298 Income taxes 142 24 32 71 ---------------------------- Net profit for the period from continuing operations -332 -110 -4 -228 Discontinued operations: Net profit for the period from discontinued operations -4 -79 -2 -5 Net profit for the period -336 -189 -6 -233 Attributable to: Owners of the parent -336 -189 -7 -233 Non-controlling interests -0 -0 0 -0 Earnings per share for profit attributable to the owners of the parent: Earnings per share, EUR -1.86 -1.05 -0.04 -1.30 Diluted earnings per share, EUR -1.86 -1.04 -0.04 -1.29 Earnings per share from continuing operations attributable to the owners of the parent: Earnings per share, EUR -1.83 -0.61 -0.03 -1.27 Earnings per share from discontinued operations attributable to the owners of the parent: Earnings per share, EUR -0.02 -0.44 -0.01 -0.03 Statement of other comprehensive income   Jan- Jan- Oct- Oct-   Dec Dec Dec Dec EUR million 2009 2008 2009 2008-------------------------------------------------------------------------------- Net profit for the period -336 -189 -6 -233 Other comprehensive income: Exchange differences on translating foreign operations 29 -75 3 -49 Available-for-sale financial assets   Fair value changes during the period 34 -37 9 -29   Reclassification adjustments

Themen in dieser Pressemitteilung:


Unternehmensinformation / Kurzprofil:
Leseranfragen:
PresseKontakt / Agentur:
Bereitgestellt von Benutzer: hugin
Datum: 03.02.2010 - 02:00 Uhr
Sprache: Deutsch
News-ID 1009936
Anzahl Zeichen: 0

contact information:
Contact person:
Town:

Espoo

Phone:

Kategorie:

Business News

Anmerkungen:


Diese Pressemitteilung wurde bisher 168 mal aufgerufen.


Die Pressemitteilung mit dem Titel:
"Outokumpu Annual Accounts Bulletin 2009 - exceptional year with heavy losses but strong cash flow
"
steht unter der journalistisch-redaktionellen Verantwortung von

Outokumpu Oyj (Nachricht senden)

Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).

Alle Meldungen von Outokumpu Oyj