OUTOKUMPU OYJ STOCK EXCHANGE RELEASE January 23, 2014 at 1.00 pm EET
Following the announcement on November 30, 2013 regarding the sale of the Terni remedy assets, the VDM business and certain service centers and the finalization of the accounting for the Inoxum transaction in 2012, Outokumpu is restating its historical financial information. The Terni remedy assets had already since the closing of Inoxum transaction in December 2012 been presented as discontinued operation, and now also the VDM business and the service centers to be sold are reported as discontinued operations. In addition, Outokumpu is adopting a new definition for net interest-bearing debt and gearing. The information presented in this release includes the most important restated figures for easy reference. The comprehensive restated historical information will be presented in the annual financial statements 2013.
Outokumpu presents the following restated and comparable historical information in the accompanied tables: Group key figures, business area key figures for Stainless Coil EMEA and High Performance Stainless and Alloys, as well as condensed income statement and statement of financial position. Restated figures are presented for 2013 financial information, as well as for the 2012 year-end statement of financial position. In addition, the 2012 comparable figures for the combined entity based on management estimates have been adjusted accordingly. Restated statement of financial position for 2012, quarterly information for 2013 and comparable data for 2012 are all unaudited.
| Group key figures, restated | ||||||||||||
| I/13 | II/13 | III/13 | I-III/13 | |||||||||
| Sales | EUR million | 1 867 | 1 738 | 1 609 | 5 214 | |||||||
| EBITDA | EUR million | 0 | -86 | -50 | -136 | |||||||
| Adjustments to EBITDA 1) | EUR million | 5 | 84 | 16 | 105 | |||||||
| Underlying EBITDA | EUR million | 5 | -2 | -34 | -31 | |||||||
| EBIT | EUR million | -87 | -171 | -134 | -392 | |||||||
| Adjustments to EBIT 2) | EUR million | 5 | 84 | 16 | 105 | |||||||
| Underlying EBIT | EUR million | -82 | -87 | -118 | -287 | |||||||
| Capital expenditure, continuing operations | EUR million | 68 | 30 | 40 | 138 | |||||||
| Stainless steel deliveries, continuing operations 3) | 1 000 tonnes | 691 | 640 | 635 | 1 965 | |||||||
| Personnel at the end of period, continuing operations 4) | 13 092 | 13 021 | 12 798 | 12 798 | ||||||||
| Depreciation and amortization, continuing operations | EUR million | -83 | -84 | -83 | -250 | |||||||
| EBIT margin | % | -4.6 | -9.8 | -8.3 | -7.5 | |||||||
| Result before taxes | EUR million | -147 | -236 | -207 | -589 | |||||||
| Net result for the period from continuing operations | EUR million | -145 | -231 | -197 | -573 | |||||||
| excluding non-recurring items | EUR million | -143 | -185 | -196 | -524 | |||||||
| Net result for the period | EUR million | -152 | -250 | -238 | -640 | |||||||
| Earnings per share | EUR | -0.07 | -0.12 | -0.11 | -0.31 | |||||||
| Earnings per share from continuing operations | EUR | -0.07 | -0.11 | -0.09 | -0.27 | |||||||
| Earnings per share from discontinued operations | EUR | -0.00 | -0.01 | -0.02 | -0.03 | |||||||
| Net cash generated from operating activities, continuing oper. | EUR million | -58 | -175 | 43 | -190 | |||||||
| Change in working capital, continuing operations | EUR million | -19 | -90 | 152 | 43 | |||||||
| Return on equity | % | -23.0 | -37.6 | -39.8 | -36.1 | |||||||
| Return on equity, continuing operations | % | -22.0 | -34.7 | -32.9 | -32.3 | |||||||
| Equity per share at the end of period | EUR | 1.34 | 1.21 | 1.09 | 1.09 | |||||||
| Group key figures, comparable | ||||||||||||
| I/12 | II/12 | III/12 | IV/12 | 2012 | ||||||||
| Sales | EUR million | 2 259 | 2 159 | 1 801 | 1 742 | 7 961 | ||||||
| EBITDA | EUR million | 50 | -116 | -70 | -131 | -267 | ||||||
| Adjustments to EBITDA 1) | EUR million | -5 | 108 | 40 | 58 | 201 | ||||||
| Underlying EBITDA | EUR million | 45 | -8 | -30 | -73 | -66 | ||||||
| EBIT | EUR million | -75 | -208 | -158 | -313 | -754 | ||||||
| Adjustments to EBIT 2) | EUR million | 37 | 117 | 43 | 144 | 342 | ||||||
| Underlying EBIT | EUR million | -38 | -91 | -115 | -169 | -412 | ||||||
| Capital expenditure, continuing operations 5) | EUR million | 179 | 162 | 191 | 231 | 763 | ||||||
| Stainless steel deliveries, continuing operations 3) | 1 000 tonnes | 742 | 703 | 647 | 631 | 2 723 | ||||||
| Personnel at the end of period, continuing operations 4) | 14 781 | 14 505 | 14 233 | 14 073 | 14 073 | |||||||
| 1) Non-recurring items, other than impairments; and inventory gains/losses | ||||||||||||
| 2) Non-recurring items and inventory gains/losses | ||||||||||||
| 3) Excluding ferrochrome deliveries | ||||||||||||
| 4) June 30, 2012 and June 30, 2013 excluding summer trainees | ||||||||||||
| 5) Excluding Inoxum acquisition of EUR 2 720 million | ||||||||||||
Presentation of the VDM business and certain service centers as discontinued operation
On November 30, 2013 Outokumpu announced comprehensive measures aimed at strengthening the company’s balance sheet and to divest the Terni remedy assets, the VDM business and certain service centers to ThyssenKrupp. Consequently, Outokumpu presents the VDM business and service centers in Willich, Germany; Barcelona, Spain; Tours, France and Gebze, Turkey as discontinued operations. These businesses will be reported in the 2013 financial statements separately from the continuing operations according to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations standard, which means that the income statement is restated as of January 1, 2013 and the statement of financial position is reclassified as of November 30, 2013.
Finalization of accounting for Inoxum transaction
Outokumpu has finalized the accounting related to the Inoxum transaction in 2012 based on the final valuation of the identifiable asset and liabilities. Outokumpu had 12 months from the closing of the transaction to retrospectively adjust the provisional amounts that had been presented in detail in the note 4 of Outokumpu’s financial statements 2012. The completion did not materially change the provisional fair values of assets acquired and liabilities assumed and did not have a material impact on the 2013 income statement.
Adoption of a new definition for net interest bearing debt and gearing
In addition, Outokumpu has decided to change its net interest-bearing debt and gearing definitions to be more aligned with common market practice. The calculation of gearing continues to be net interest-bearing debt divided by equity. The change relates to the net interest-bearing debt definition which now includes long-term and current debt, less cash and cash equivalents. In the previous Outokumpu definition, certain investments and receivables, derivative financial instruments, accrued interests, and assets and liabilities held for sale were included in the net interest-bearing debt calculation.
For more information:
Investors: Johanna Henttonen, tel. +358 9 421 3804, mobile +358 40 530 0778
Media: Saara Tahvanainen, tel. +358 40 589 0223 Outokumpu Group Outokumpu is the global leader in stainless steel and high performance alloys. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs more than 15 000 professionals in more than 40 countries, with headquarters in Espoo, Finland and shares listed in the NASDAQ OMX Helsinki. www.outokumpu.com
