UPDATE 1-Outokumpu Q2 operating profit misses forecasts

Tag : Steel Stainless

HELSINKI July 24 (Reuters) - Stainless steel maker Outokumpu on Thursday reported lower-than-expected second-quarter operatingprofit, hit by softening demand in Europe, and the news sent itsshares sharply lower.
Shares in Outokumpu were down 17.5 percent at 15.86 euros by 1020GMT, its lowest level in two years.
Outokumpu reported April-June operating profit of 174 million euros($273 million), compared with an average forecast of 211 million ina Reuters poll of 12 analysts, but within the range of estimates.
'It was clearly a big disappointment,' said eQ Bank analyst ErkkiVesola.
Outokumpu said it expects to report a third-quarter operating lossand expects delivery volumes in the same quarter to fall comparedwith the previous one.
'At the end of the second quarter, stainless markets turned softerdue to seasonality and a declining nickel price,' Chief ExecutiveJuha Rantanen said in a statement.
'There are, however, good prospects for the distributor markets toimprove during this fall: the inventories are normal, imports toEurope are moderate and the nickel price has come downsubstantially from its historic highs,' he said.
(Reporting by Agnieszka Flak; Editing by Paul Bolding) ($1=.6375Euro) Keywords: OUTOKUMPU/RESULTS
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