Outokumpu restates consolidated statement of income and relevant Group and segment key figures for 2021 and first half of 2022 to reflect the divestment of majority of its Long Products business
Outokumpu Oyj
Stock exchange release
September 26, 2022 at 4.00 pm EEST
Outokumpu restates consolidated statement of income and relevant Group and segment key figures for 2021 and first half of 2022 to reflect the divestment of majority of its Long Products business
On July 12, Outokumpu announced that it has signed an agreement to divest the majority of the Long Products business operations to Marcegaglia Steel Group, a leading industrial group worldwide in the steel processing sector. Outokumpu will focus on its core business of flat stainless steel products.
The total consideration on a debt and cash free basis amounts to EUR 228 million, implying an EV / Adjusted 2021 EBITDA multiple of 4.9x. Outokumpu expects the transaction to strengthen its financial position.
The divestment is expected to be completed by the end of this year. The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities and requires for instance internal structuring before completion. The transaction will be carried out as a share sale.
Adjusted EBITDA of business area Long Products accounted for approximately 5% of the Group's adjusted EBITDA in 2021. The transaction includes Long Products’ melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, the US; and wire rod mill in Fagersta, Sweden. The transaction does not include Outokumpu Long Products operations in Degerfors and Storfors in Sweden, whose adjusted EBITDA amounted to EUR 8 million in 2021. The above mentioned units continue their operations for now as part of the Outokumpu Group, and different options are to be evaluated for the future of the units.
For more information about business area Long Products' financials, please see Outokumpu’s interim reports and Financial Statements.
Comparative financial information
In the January–September 2022 interim report, Outokumpu will classify its Long Products businesses to be divested as assets held for sale and report the businesses as discontinued operations. In January-September interim report, result from the discontinued operations will be reported separately from income and expenses from continuing operations in the consolidated income statement and prior periods are restated accordingly. The balance sheet will not be restated for prior periods. Assets and liabilities related to the discontinued operations will be presented as separate line items in the balance sheet starting from January–September 2022 reporting period. The statement of cash flow will consist of total Group figures, including also the discontinued operations.
The 2021 and first half of 2022 comparable historical financial information for the Group’s condensed income statement, as well as Group and segment key figures are presented later in this release. Income statement and three main categories of cash flow for the discontinued operations are presented for both half-year and full-year financials as those reports are drawn up in accordance with IAS 34 Interim Financial reporting. Unless stated otherwise, all figures refer to Outokumpu’s continuing operations.
Intra-group revenues and expenses between continuing and discontinued operations are eliminated in continuing operations only when the revenues and expenses are not considered to continue after the disposal of the discontinued operations.
|
Group key figures (quarterly) |
|
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
Continuing operations |
|
|
|
|
|
|
|
|
Sales |
EUR million |
2,686 |
2,573 |
2,083 |
1,845 |
1,744 |
1,572 |
|
EBITDA |
EUR million |
491 |
350 |
300 |
288 |
211 |
169 |
|
Adjusted EBITDA 1) |
EUR million |
491 |
350 |
312 |
288 |
211 |
169 |
|
EBIT |
EUR million |
431 |
289 |
180 |
229 |
154 |
110 |
|
Adjusted EBIT 1) |
EUR million |
431 |
289 |
234 |
229 |
154 |
110 |
|
Result before taxes |
EUR million |
413 |
281 |
168 |
212 |
135 |
95 |
|
Net result for the period |
EUR million |
338 |
230 |
150 |
178 |
121 |
77 |
|
Earnings per share |
EUR |
0.75 |
0.53 |
0.34 |
0.40 |
0.28 |
0.19 |
|
Diluted earnings per share |
EUR |
0.69 |
0.49 |
0.31 |
0.37 |
0.26 |
0.18 |
|
Capital expenditure |
EUR million |
30 |
30 |
58 |
30 |
36 |
46 |
|
Stainless steel deliveries |
1,000 tonnes |
560 |
605 |
550 |
546 |
586 |
571 |
|
Personnel at the end of period, |
|
8,480 |
8,514 |
8,439 |
8,492 |
8,435 |
8,592 |
|
Return on capital employed 2) |
% |
28.3 |
22.3 |
18.0 |
12.3 |
5.2 |
0.8 |
|
Continuing and discontinued operations |
|
|
|
|
|
|
|
|
Net result for the period |
EUR million |
385 |
251 |
159 |
182 |
129 |
82 |
|
Earnings per share |
EUR |
0.85 |
0.55 |
0.35 |
0.40 |
0.30 |
0.20 |
|
Diluted earnings per share |
EUR |
0.78 |
0.51 |
0.33 |
0.37 |
0.28 |
0.19 |
|
Return on capital employed |
% |
29.9 |
23.0 |
18.4 |
12.5 |
5.2 |
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Adjusted EBITDA or EBIT = EBITDA or EBIT – Items classified as adjustments. |
|||||||
|
2) According to definitions of key figures balance sheet component includes discontinued operations’ assets and liabilities. |
|||||||
|
|
|||||||
|
Group key figures (half year and full year) |
|
Jan–Jun |
Jan–Jun |
Jan-Dec |
|||
|
Continuing operations |
|
|
|
|
|||
|
Sales |
EUR million |
5,259 |
3,315 |
7,243 |
|||
|
EBITDA |
EUR million |
842 |
380 |
968 |
|||
|
Adjusted EBITDA 1) |
EUR million |
842 |
380 |
980 |
|||
|
EBIT |
EUR million |
720 |
265 |
674 |
|||
|
Adjusted EBIT 1) |
EUR million |
720 |
265 |
728 |
|||
|
Result before taxes |
EUR million |
695 |
230 |
610 |
|||
|
Net result for the period |
EUR million |
567 |
198 |
526 |
|||
|
Earnings per share |
EUR |
1.28 |
0.47 |
1.21 |
|||
|
Diluted earnings per share |
EUR |
1.18 |
0.43 |
1.13 |
|||
|
Capital expenditure |
EUR million |
61 |
82 |
171 |
|||
|
Stainless steel deliveries |
1,000 tonnes |
1,165 |
1,157 |
2,254 |
|||
|
Personnel at the end of period, |
|
8,480 |
8,435 |
8,439 |
|||
|
Return on capital employed 2) |
% |
28.3 |
5.2 |
18.0 |
|||
|
Continuing and discontinued operations |
|
|
|
|
|||
|
Net result for the period |
EUR million |
636 |
212 |
553 |
|||
|
Earnings per share |
EUR |
1.40 |
0.50 |
1.26 |
|||
|
Diluted earnings per share |
EUR |
1.29 |
0.46 |
1.17 |
|||
|
Return on capital employed |
% |
29.9 |
5.2 |
18.4 |
|||
|
|
|
|
|
|
|||
|
1) Adjusted EBITDA or EBIT = EBITDA or EBIT – Items classified as adjustments. |
|||||||
|
2) According to definitions of key figures balance sheet component includes discontinued operations’ assets and liabilities. |
|||||||
|
Condensed statement of |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun 2022 |
Jan-Jun 2021 |
Jan-Dec 2021 |
||||
|
Sales |
2,686 |
2,573 |
2,083 |
1,845 |
1,744 |
1,572 |
5,259 |
3,315 |
7,243 |
||||
|
Cost of sales |
-2,219 |
-2,162 |
-1,811 |
-1,561 |
-1,520 |
-1,418 |
-4,381 |
-2,938 |
-6,310 |
||||
|
Gross margin |
468 |
411 |
272 |
284 |
224 |
154 |
878 |
377 |
933 |
||||
|
Other operating income |
43 |
4 |
25 |
10 |
5 |
18 |
8 |
17 |
49 |
||||
|
Sales, general and |
-79 |
-76 |
-68 |
-64 |
-66 |
-56 |
-155 |
-122 |
-254 |
||||
|
Other operating expenses |
-1 |
-50 |
-48 |
-1 |
-9 |
-5 |
-12 |
-7 |
-54 |
||||
|
EBIT |
431 |
289 |
180 |
229 |
154 |
110 |
720 |
265 |
674 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Share of results in associated |
6 |
5 |
4 |
2 |
3 |
6 |
10 |
9 |
15 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expenses |
-11 |
-10 |
-15 |
-15 |
-17 |
-18 |
-21 |
-35 |
-64 |
||||
|
Net other financial income |
-12 |
-2 |
-1 |
-5 |
-6 |
-3 |
-15 |
-9 |
-15 |
||||
|
Total financial income |
-23 |
-13 |
-16 |
-19 |
-23 |
-21 |
-36 |
-44 |
-79 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Result before taxes |
413 |
281 |
168 |
212 |
135 |
95 |
695 |
230 |
610 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income taxes |
-76 |
-52 |
-18 |
-34 |
-13 |
-19 |
-127 |
-32 |
-84 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net result for the period |
338 |
230 |
150 |
178 |
121 |
77 |
567 |
198 |
526 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net result for the period from discontinued operations |
47 |
21 |
9 |
4 |
8 |
6 |
68 |
14 |
27 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net result for the period |
385 |
251 |
159 |
182 |
129 |
82 |
636 |
212 |
553 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share for result from continuing operations attributable to the equity holders of the Company
|
|
||||||||||||
|
Earnings per share, EUR |
0.75 |
0.53 |
0.34 |
0.40 |
0.28 |
0.19 |
1.28 |
0.47 |
1.21 |
||||
|
Diluted earnings per share, EUR |
0.69 |
0.49 |
0.31 |
0.37 |
0.26 |
0.18 |
1.18 |
0.43 |
1.13 |
||||
|
Earnings per share for result attributable to the equity holders of the Company |
|||||||||||||
|
Earnings per share, EUR |
0.85 |
0.55 |
0.35 |
0.40 |
0.30 |
0.20 |
1.40 |
0.50 |
1.26 |
||||
|
Diluted earnings per share, EUR |
0.78 |
0.51 |
0.33 |
0.37 |
0.28 |
0.19 |
1.29 |
0.46 |
1.17 |
||||
Earnings per share figures are calculated based on the share-issue-adjusted weighted average number of shares. Comparative information is presented accordingly.
Segment key figures for continuing operations
(EUR million)
Long products activities that remain in Outokumpu are included in Other operations.
| Sales by segment | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Jan-Jun | Jan-Jun | Jan-Dec |
| (EUR million) | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2022 | 2021 | 2021 |
| Europe total | 1,768 | 1,693 | 1,320 | 1,131 | 1,124 | 1,025 | 3,461 | 2,149 | 4,600 |
| of which intra-group | 9 | 7 | 18 | 10 | 25 | 16 | 16 | 41 | 69 |
| Americas total | 775 | 662 | 556 | 530 | 476 | 384 | 1,437 | 861 | 1,947 |
| of which intra-group | 0 | 8 | 3 | 15 | 25 | 9 | 8 | 34 | 51 |
| Ferrochrome total | 212 | 175 | 179 | 149 | 155 | 121 | 388 | 276 | 604 |
| of which intra-group | 133 | 124 | 126 | 102 | 105 | 85 | 258 | 190 | 418 |
| Other operations total | 150 | 247 | 260 | 234 | 212 | 208 | 396 | 420 | 914 |
| of which intra-group | 102 | 101 | 114 | 93 | 86 | 81 | 203 | 166 | 373 |
| Group total sales | 2,686 | 2,573 | 2,083 | 1,845 | 1,744 | 1,572 | 5,259 | 3,315 | 7,243 |
|
Adjusted EBITDA by segment |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
(EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
289 |
193 |
161 |
149 |
98 |
78 |
483 |
176 |
485 |
|
Americas |
136 |
90 |
95 |
84 |
65 |
54 |
226 |
119 |
297 |
|
Ferrochrome |
93 |
79 |
73 |
64 |
67 |
42 |
172 |
109 |
246 |
|
Other operations |
-26 |
-13 |
-16 |
-8 |
-18 |
-6 |
-39 |
-24 |
-48 |
|
Group total adjusted EBITDA |
491 |
350 |
312 |
288 |
211 |
169 |
842 |
380 |
980 |
|
Adjustments to EBITDA and |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
EBIT by segment (EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
- |
- |
2 |
- |
- |
- |
- |
- |
2 |
|
Americas |
- |
- |
-15 |
- |
- |
- |
- |
- |
-15 |
|
Ferrochrome |
- |
- |
-13 |
- |
- |
- |
- |
- |
-13 |
|
Other operations |
- |
- |
-28 |
- |
- |
- |
- |
- |
-28 |
|
Group total adjustments |
- |
- |
-54 |
- |
- |
- |
- |
- |
-54 |
|
EBITDA by segment |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
(EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
289 |
193 |
173 |
149 |
98 |
78 |
483 |
176 |
498 |
|
Americas |
136 |
90 |
80 |
84 |
65 |
54 |
226 |
119 |
283 |
|
Ferrochrome |
93 |
79 |
73 |
64 |
67 |
42 |
172 |
109 |
246 |
|
Other operations |
-26 |
-13 |
-26 |
-8 |
-18 |
-6 |
-39 |
-24 |
-58 |
|
Group total EBITDA |
491 |
350 |
300 |
288 |
211 |
169 |
842 |
380 |
968 |
|
Adjusted EBIT by segment |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
(EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
257 |
160 |
120 |
115 |
64 |
44 |
417 |
108 |
344 |
|
Americas |
120 |
75 |
75 |
70 |
51 |
40 |
194 |
91 |
235 |
|
Ferrochrome |
82 |
68 |
56 |
55 |
58 |
34 |
151 |
92 |
202 |
|
Other operations |
-28 |
-14 |
-17 |
-10 |
-19 |
-7 |
-42 |
-26 |
-53 |
|
Group total adjusted EBIT |
431 |
289 |
234 |
229 |
154 |
110 |
720 |
265 |
728 |
|
EBIT by segment |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
(EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
257 |
160 |
122 |
115 |
64 |
44 |
417 |
108 |
346 |
|
Americas |
120 |
75 |
60 |
70 |
51 |
40 |
194 |
91 |
220 |
|
Ferrochrome |
82 |
68 |
43 |
55 |
58 |
34 |
151 |
92 |
189 |
|
Other operations |
-28 |
-14 |
-45 |
-10 |
-19 |
-7 |
-42 |
-26 |
-81 |
|
Group total EBIT |
431 |
289 |
180 |
229 |
154 |
110 |
720 |
265 |
674 |
|
Depreciation and amortization |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
by segment (EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
-33 |
-33 |
-40 |
-33 |
-33 |
-34 |
-66 |
-68 |
-141 |
|
Americas |
-16 |
-16 |
-19 |
-13 |
-13 |
-13 |
-32 |
-26 |
-59 |
|
Ferrochrome |
-11 |
-11 |
-17 |
-10 |
-9 |
-9 |
-21 |
-18 |
-44 |
|
Other operations |
-2 |
-1 |
-1 |
-1 |
-1 |
-1 |
-2 |
-2 |
-4 |
|
Group total depreciation and amortization |
-61 |
-61 |
-78 |
-57 |
-57 |
-57 |
-122 |
-113 |
-249 |
|
Capital expenditure |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
by segment (EUR million) |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
2022 |
2021 |
2021 |
|
Europe |
6 |
4 |
14 |
4 |
3 |
8 |
10 |
11 |
29 |
|
Americas |
2 |
1 |
12 |
2 |
1 |
1 |
3 |
2 |
16 |
|
Ferrochrome |
21 |
24 |
19 |
19 |
27 |
28 |
45 |
55 |
93 |
|
Other operations |
1 |
2 |
12 |
6 |
5 |
9 |
3 |
14 |
32 |
|
Group total capital expenditure |
30 |
30 |
58 |
30 |
36 |
46 |
61 |
82 |
171 |
|
Personnel at the end of period by segment, |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
Europe |
5,668 |
5,745 |
5,706 |
5,758 |
5,710 |
5,886 |
5,668 |
5,710 |
5,706 |
|
Americas |
1,911 |
1,871 |
1,831 |
1,840 |
1,851 |
1,805 |
1,911 |
1,851 |
1,831 |
|
Ferrochrome |
483 |
490 |
481 |
482 |
470 |
479 |
483 |
470 |
481 |
|
Other operations |
418 |
408 |
422 |
412 |
405 |
423 |
418 |
405 |
422 |
|
Group total personnel |
8,480 |
8,514 |
8,439 |
8,492 |
8,435 |
8,592 |
8,480 |
8,435 |
8,439 |
Discontinued operations
|
Condensed statement of income (EUR million) |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
Sales and operating income |
454 |
231 |
466 |
|
Expenses |
-377 |
-216 |
-436 |
|
Net financial expenses |
1 |
0 |
-1 |
|
Result before tax |
77 |
14 |
29 |
|
Income tax |
-9 |
-1 |
-2 |
|
Net result from discontinued operations |
68 |
14 |
27 |
|
Condensed statement of cash flows (EUR million) |
Jan-Jun |
Jan-Jun |
Jan-Dec |
|
Operating cash flow |
47 |
11 |
28 |
|
Investing cash flow |
-2 |
-2 |
-4 |
|
Financing cash flow |
-35 |
5 |
-6 |
|
Cash flow from discontinued operations |
10 |
14 |
18 |
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669
Media: Päivi Allenius, VP, Communications, tel. +358 40 753 7374, or media desk, tel. +358 40 351 9840