Outokumpu Oyj

Outokumpu is organized into the following five business areas: Coil Europe, Middle East and Africa, which consists of stainless operations as well as ferrochrome production in Europe; Coil Americas, which produces standard austenitic and ferritic grades as well as tailored products; APAC, which includes cold rolling facility and coil and plate service center in China, as well as a coil service center in Australia; Quarto Plate, which is comprised of the quarto plate production facilities in Sweden and in the U.S.; as well as Long Products, in which its products are used in a range of applications such as springs, wires, surgical equipment, automotive parts and construction.
  • TickerOUT1V
  • ISINFI0009002422
  • ExchangeNasdaq Nordic Helsinki
  • SectorIndustrial Metals & Mining
  • CountryFinland
Tony Lebon

Outokumpu : Reduce recommendation on both debt instruments

Outokumpu unveiled last month Q2 results marked by a halved Ebitda in the context of the Covid-19 crisis. The group suffered from both lower volumes and realized prices. - With regards to the high gross leverage expected at year-end (about 8x – above the 6x trigger set by Moody’s for a further rating downgrade), we maintain our Negative credit opinion on the name. - An announcement of the disposal project of the Americas and (to a lesser extent) the Long Products divisions could bri...

Tony Lebon

Outokumpu : Reduce recommendation on both debt instruments

Outokumpu unveiled last month Q2 results marked by a halved Ebitda in the context of the Covid-19 crisis. The group suffered from both lower volumes and realized prices. - With regards to the high gross leverage expected at year-end (about 8x – above the 6x trigger set by Moody’s for a further rating downgrade), we maintain our Negative credit opinion on the name. - An announcement of the disposal project of the Americas and (to a lesser extent) the Long Products divisions could bri...

Thanks to a better fundamental star rating, OUTOKUMPU OYJ sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to OUTOKUMPU OYJ (FI), active in the Steel industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 3 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date September 18, 2020, the closing price was EUR 2.34 and its expected value was estimated at EUR 2.30.

Jean Sassus ...
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 08/10/2020

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Jean Sassus ...
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 10/08/2020

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Alain William

ODDO : Winning trio of Q2: Acerinox, Aperam and Outokumpu in that order. Q3 expected to be broadly stable

>Outokumpu’s disappoints in Q2 2020 and launches a strategic review - Outokumpu reported a disappointing Q2 2020 EBITDA of € 45m (vs € 106m in Q1) as the group 1/ was forced to sell more ferrochrome on the spot market (less profitable than the benchmark), 2/ faced a temporary drop in the efficiency of its scrap utilisation rate (Europe BU) and 3/ had an unfavourable mix for the Americas BU. Management has provided no guidance for Q3 but expects a 10% drop in sequenti...

Alain William

ODDO : Le trio gagnant du T2 : Acerinox, Aperam et Outokumpu dans cet ordre. Un T3 attendu stable dans l’ensemble

>Outokumpu déçoit au T2 2020 et lance une revue stratégique - Outokumpu a publié un EBITDA décevant au T2 2020 à 45 M€ (vs 106 M€ au T1) car le groupe 1/ a été contraint de vendre plus de Ferrochrome sur le marché spot (moins profitable que le benchmark), 2/ a fait face à une baisse temporaire de son efficacité dans l’utilisation de la ferraille (BU Europe) et 3/ à un mix défavorable pour la BU Americas. Le management ne donne pas de guidance pour le T3 mais indique s...

Alain William

Outokumpu : Q2 2020 numbers lower than expected. No guidance for Q3

>Q2 comes in below expectations - Outokumpu published Q2 2020 adjusted EBITDA of € 45m, i.e. well below our expectations (ODDO BHF: € 60m) and the consensus (Vara: € 53m). This result is down 57% q-o-q (Q1 2020: € 106m) despite a relatively limited decline of stainless steel deliveries i.e. -11% q-o-q to 523kt and 2/ a relatively limited decrease q-o-q, with a € 6m loss from raw material-related inventory and metal derivatives. By division, BA Europe disappointed with...

Alain William

Outokumpu : Q2 2020 numbers lower than expected. No guidance for Q3

>Q2 comes in below expectations - Outokumpu published Q2 2020 adjusted EBITDA of € 45m, i.e. well below our expectations (ODDO BHF: € 60m) and the consensus (Vara: € 53m). This result is down 57% q-o-q (Q1 2020: € 106m) despite a relatively limited decline of stainless steel deliveries i.e. -11% q-o-q to 523kt and 2/ a relatively limited decrease q-o-q, with a € 6m loss from raw material-related inventory and metal derivatives. By division, BA Europe disappointed with...

Alain William

Outokumpu : The call on the market confirms strain on the balance sheet. The pertinence of the divestment of Outokumpu Americas validated

>Moderate decline in shipments confirmed for Q2 2020 - Outokumpu CFO Pia Aaltonen-Forsell has confirmed that shipments were set to be down by 10-20% in Q2 2020, in line with management’s guidance. Outokumpu Europe (OE) appears to have been more resilient than Outokumpu Americas (OA). The CFO also confirmed 1/ an upturn from a still low base in the segments that were hit early and significantly by the COVID-19 crisis, such as automotive (low exposure) and home applianc...

Tony Lebon

Outokumpu : Reduce recommendation on both debt instruments

Outokumpu unveiled last month Q2 results marked by a halved Ebitda in the context of the Covid-19 crisis. The group suffered from both lower volumes and realized prices. - With regards to the high gross leverage expected at year-end (about 8x – above the 6x trigger set by Moody’s for a further rating downgrade), we maintain our Negative credit opinion on the name. - An announcement of the disposal project of the Americas and (to a lesser extent) the Long Products divisions could bri...

Tony Lebon

Outokumpu : Reduce recommendation on both debt instruments

Outokumpu unveiled last month Q2 results marked by a halved Ebitda in the context of the Covid-19 crisis. The group suffered from both lower volumes and realized prices. - With regards to the high gross leverage expected at year-end (about 8x – above the 6x trigger set by Moody’s for a further rating downgrade), we maintain our Negative credit opinion on the name. - An announcement of the disposal project of the Americas and (to a lesser extent) the Long Products divisions could bri...

Tony Lebon

Outokumpu : Risk of rating downgrade at Moody’s in our view

Outokumpu’s outlook for Q3 is poor on the basis notably of expected lower deliveries in Europe and decreasing ferrochrome price. - Assuming, at end-September 2019, a gross debt of about EUR 1.4bn, debt adjustments of about +EUR 700m (Moody’s methodology), and an adjusted LTM Ebitda of about EUR 290m (EUR 203m expected in 9M-19 by our equity analyst + EUR 89m reported in Q4-18), we calculate an adjusted gross leverage of about 7.2x, which is way above the 4.5x criteria for the B1 i...

Tony Lebon

Outokumpu : Risk of rating downgrade at Moody’s in our view

Outokumpu’s outlook for Q3 is poor on the basis notably of expected lower deliveries in Europe and decreasing ferrochrome price. - Assuming, at end-September 2019, a gross debt of about EUR 1.4bn, debt adjustments of about +EUR 700m (Moody’s methodology), and an adjusted LTM Ebitda of about EUR 290m (EUR 203m expected in 9M-19 by our equity analyst + EUR 89m reported in Q4-18), we calculate an adjusted gross leverage of about 7.2x, which is way above the 4.5x criteria for the B1 i...

Tony Lebon

Outokumpu : Focus Emission

Outokumpu intends to issue a new EUR 250m senior secured bond due 2024. The new bond will be non-callable during 2 years and will have covenants substantially similar to the existing 2021 bonds.The proceeds from the new issue are intended to be used primarily for the voluntary redemption of the company’s 2021 straight bonds which was separately announced on May 9, 2018 (current outstanding amount of EUR 202.5m). The remaining proceeds shall be used for general corporate purp...

Jean Sassus ...
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 08/10/2020

...

Jean Sassus ...
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 10/08/2020

...

Alain William ...
  • Fatma Agnès Hamdani
  • Jean-François Granjon
  • Jerôme Bodin

ODDO BHF Small & MIDCAP MORNING NEWS - 07/03/2020

Ecology and economic development are often depicted as opposing forces. The European Green Deal pulls off the feat of promoting the former to ensure the latter. Whilst its financing may have raised doubts, the prospect of the € 750bn recovery plan underpins its credibility. Better still, this plan, which proposes for the first time a pooling of debts, is revolutionary. Indeed, for the sectors and stocks concerned, it catalyses the cumulative effects of the additional activity that th...

Thanks to a better fundamental star rating, OUTOKUMPU OYJ sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to OUTOKUMPU OYJ (FI), active in the Steel industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 3 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date September 18, 2020, the closing price was EUR 2.34 and its expected value was estimated at EUR 2.30.

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