Finnish stainless steelmaker Outokumpu is planning to reduce its fixed costs in Q4 2020 by laying off about 1,000 employees after posting a net loss of €78mn in the January-September period. The company will also conduct year-end maintenance at its plant in Tornio, Finland during the quarter.
In January-September 2020, Outokumpu’s shipments accounted for 1.6mn mt of stainless steel, falling by 8.6pc from 1.74mn mt in the first nine months of 2019. Net revenue from sales fell short by 16.7pc, to €4.3mn (5.07mn) against €5mn in the same comparative period.
Q3 2020 operations
During Q3 2020, the manufacturer delivered 488,000mt of stainless-steel products, down 9.2pc from 533,000mt in the same period last year. Sales accounted for €1.25mn, compared with €1.59mn in Q3 2019.
Outokumpu’s adjusted EBITDA in the third quarter halved compared to Q3 2019, tallying at €22mn, compared with €45mn. In the same comparative period, net losses increased 2.3 times to €63mn over €27mn.