Outokumpu Oyj: Outokumpu’s second quarter 2010 – return to profits in improved markets

July 23, 2010 By Leave a Comment

PRESS RELEASE
July 22, 2010 at 9.10 am

Highlights

- Operating profit EUR 71 million, underlying operational result some EUR 16 million
- Deliveries and prices improved clearly from the second quarter of 2009
- Third-quarter underlying operational result expected to be somewhat negative due to
seasonality, underlying demand continues to recover
- Investments in ferrochrome and quarto plate production decided

Group key figures, EUR million II/10 II/09 I/10

Sales 1110 617 916
Operating profit 71 -94 -22
Profit before taxes 63 -105 -33
Net profit for the period 44 -87 -21
Earnings per share, EUR 0.24 -0.48 -0.12
Net cash generated from operating activities -314 21 -86

Stainless steel deliveries, 1000 tonnes 339 268 333
Stainless steel base price, EUR/t 1) 1 317 1 117 1 235
Stainless steel transaction price, EUR/t 3 018 1 751 2 329

1) CRU: German base price (2mm cold rolled 304 sheet)

1) CRU: German base price (2mm cold rolled 304 sheet)

Underlying demand for standard grades continues to recover and this is expected to
continue also after the holiday season. Demand for special grades is still lagging.
However, commercial activity in the investment-driven customer segments continues and is
expected to generate orders within the next 6-12 months. Currently the holiday season
and the declined nickel price are causing some hesitance among the stainless
distributors to place orders.

Outokumpu’s deliveries of stainless steel increased by 26% to 339 000 tonnes in the
second quarter compared to the same quarter in 2009. Base prices improved by 18%.
Transaction prices, which also include raw material costs, were as much as 72% higher
than a year ago. Out of the raw material prices, the average nickel price was 74% higher
and ferrochrome 97% higher than in 2009. As a result, Outokumpu’s sales grew as much as
80% to EUR 1 110 million in the second quarter.

Compared to the first quarter of 2010 Outokumpu’s second-quarter deliveries were at
about the same level and the Group’s capacity utilisation remained around 75%. This
combined with the positive price development, however enabled Outokumpu to return to
profit after seven loss-making quarters. The underlying operational result was positive
at EUR 16 million compared with a loss of EUR 32 million in the first quarter of 2010
and a loss of EUR 94 million a year ago. Additionally, Outokumpu recorded some EUR 55
million of raw material-related inventory gains increasing the operating profit to EUR
71 million (EUR -94 million in 2009). The increase in working capital due to higher
inventory levels and raw material prices resulted in strongly negative cash flow for the
quarter.

The slow-down in demand during the holiday season and annual maintenance breaks at the
Group’s mills will result in stainless delivery volumes for the third quarter to be
10-20% lower than in the second quarter. The underlying operational result in the third
quarter is expected to be somewhat negative. Operative cash flow in the quarter is
expected to turn positive subject to metal price development.

In June, Outokumpu decided on two strategic investments amounting to EUR 550 million.
The production capacity of ferrochrome in Tornio, Finland will be doubled and the
production capability of quarto plates will be improved in Degerfors, Sweden. In July,
the Finnish Parliament gave Fennovoima a permit to build a nuclear power plant in
Finland. Fennovoima is a Finnish energy company that was established in 2007 with an aim
to construct a new nuclear power plant in the country. Outokumpu owns about 10% of
Fennovoima.

CEO Juha Rantanen:

“After several loss-making quarters it is gratifying to present Outokumpu’s return to
profits in the second quarter. A clear recovery in the standard grades business and
improved prices have been the main factors, while business in capital investment-driven
special grades is still lagging. As always, the third quarter is expected to be
seasonally weak. We are confident that underlying demand continues to improve and we are
making preparations to take full advantage of a recovery in demand after the holiday
season.

Outokumpu made some major news announcements during the second quarter. The market
recovery and our financial performance enabled us to embark on two important strategic
investments. The expansion in ferrochrome production is not only about raw material
self-sufficiency but also about growth. The investment in quarto plate production
solidifies our leading position in the tailor-made plate business, strongly supporting
our special grades strategy.”

This press release is a summary of Outokumpu’s official second quarter 2010 report.

For further information, please contact:

Päivi Lindqvist, SVP – Communications and IR
tel. +358 9 421 2432, mobile +358 40 708 5351
paivi.lindqvist@outokumpu.com

Ingela Ulfves, VP – Investor Relations and Financial Communications
tel. +358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com

Esa Lager, CFO
tel +358 9 421 2516
esa.lager@outokumpu.com

OUTOKUMPU OYJ

Outokumpu is a global leader in stainless steel with the vision to be the undisputed
number one. Customers in a wide range of industries use our stainless steel and services
worldwide. Being fully recyclable, maintenance-free, as well as very strong and durable
material, stainless steel is one of the key building blocks for sustainable future.
Outokumpu employs some 7 500 people in more than 30 countries. The Group’s head office
is located in Espoo, Finland. Outokumpu is listed on the NASDAQ OMX Helsinki.
www.outokumpu.com

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Arkema : Update on the Improvement of Market Conditions in the 2nd Quarter 2010

July 2, 2010 By Leave a Comment

COLOMBES, France–(Business Wire)–
Regulatory News:

The improvement, month after month, of the economic environment seen in the 1st
quarter continued throughout the 2nd quarter. During this quarter, Arkema
(Paris:AKE) also benefited from the usual stronger seasonality effect in several
businesses such as Fluorochemicals, Specialty Chemicals or Coatings.

Beyond these more favorable market conditions, the ramp-up of the new HFC-125
fluorochemicals production unit in China, the development of products for new
energy markets, the successful integration of the acrylic assets acquired from
Dow in North America and the benefits from cost saving initiatives should enable
Arkema to achieve, in the 2nd quarter 2010, sales and EBITDA significantly above
the 1st quarter 2010, which already showed a strong recovery of the financial
performance. The 2nd quarter would thus be the best quarter since Arkema`s
spin-off.

The Group will release its 2nd quarter results on August 3rd, 2010.

A global chemical company, Arkema consists of three businesses: Vinyl Products,
Industrial Chemicals, and Performance Products. Arkema reported sales of 4.4
billion euros in 2009. Arkema has 13,800 employees in over 40 countries and
seven research centers located in France, the United States and Japan. With
internationally recognized brands, Arkema holds leadership positions in its
principal markets.

ARKEMA
Investor Relations:
Sophie Fouillat, +33 1 49 00 86 37
sophie.fouillat@arkema.com
or
Jérôme Raphanaud, +33 1 49 00 72 07
jerome.raphanaud@arkema.com
or
Press Relations:
Gilles Galinier, +33 1 49 00 70 07
gilles.galinier@arkema.com
or
Sybille Chaix, +33 1 49 00 70 30
sybille.chaix@arkema.com

Copyright Business Wire 2010

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Changes in humidity, temperature may trigger asthma among kids

September 15, 2009 By Leave a Comment

Washington, September 15 (ANI): Changes in humidity and temperature may trigger asthma among kids, suggests a report.

Published in the journal Annals of Allergy, Asthma and Immunology, the report says that such weather changes have been found to result in a rise in Emergency Department (ED) visits for paediatric asthma exacerbations.

“We found a strong relationship between temperature and humidity fluctuations with pediatric asthma exacerbations, but not barometric pressure,” said Dr. Nana A. Mireku, an allergist at Dallas Allergy Immunology private practice in Dallas, formerly at Children’s Hospital of Michigan, Wayne State University School of Medicine, Detroit.

“To our knowledge, this is the first study that demonstrated these correlations after controlling for levels of airborne pollutants and common aeroallergens.

“Our study is also one of the few to examine the possibility that the weather one or two days before the asthma exacerbation may be as important as that on the day of admission, as the additional ED visits occur one to two days after the fluctuation,” she added.

The authors of the report write that patients experiencing an asthma attack often complain that weather fluctuations are a major trigger.

Dr. Mireku said: “the latest National Institutes of Health guidelines list ‘change in weather’ as a possible precipitating factor for asthma, but no previous studies have really examined this potential trigger in a rigorous fashion.”

According to the report, the retrospective 2-year study was performed at a large urban hospital of 25,401 children visiting the ED for an asthma exacerbation.

The researchers collected data on climactic factors, pollutants and aeroallergens on a daily basis.

They used time series analysis to evaluate the relationship of daily or between-day changes in climactic factors and asthma ED visits, controlling for seasonality, air pollution and aeroallergen exposure.

The effects of climactic factors were evaluated on the day of admission and up to five days before admission.

The researchers found that a 10 percent daily increase in humidity on a day or two before admission was associated with approximately one additional ED visit for asthma.

The authors write that between-day changes in humidity from two to three days prior to admission were also associated with more ED visits.

Daily changes in temperature on the day of or the day before admission increased ED visits, with a 10 degree F increase being association with 1.8 additional visits.

“Asthma is the most common chronic illness in childhood. Allergists have long known that weather conditions such as extremely dry, wet or windy weather can affect asthma symptoms. This study further defines the role of temperature and humidity on children’s asthma and confirms the importance of working with patients to identify the source of their symptoms and develop treatment plans that help prevent them,” said allergist Richard G. Gower, president of the American College of Allergy, Asthma and Immunology (ACAAI). (ANI)

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Kids ‘more likely to develop diabetes in winters’

August 25, 2009 By Leave a Comment

London, Aug 24 (ANI): Kids under the age of 15 are at a higher risk of developing type 1 diabetes in winters, finds a new study.

Researchers from National Institute for Health and Welfare have found that this winter trend was more prevalent in boys as well as in both sexes from the older age groups 5 to 14 years old.

Unlike Type 2 diabetes, which develops in middle age, the Type 1 form typically arises in childhood and requires lifelong supplements of insulin.

The condition develops when the insulin-producing cells in the pancreas have been destroyed.

It is not known for sure why these cells have been damaged but the most likely cause is an abnormal reaction of the body to the cells. This may be triggered by a viral or other infection.

“Numerous reasons have been suggested for the apparent seasonality of the onset of Type 1 diabetes,” Times Online quoted Elena Moltchanova, who led the study, as saying.

“These include a seasonal variation in people’s levels of blood glucose and insulin, seasonal viral infections, the fact that young people tend to eat more and do less physical activity during winter months and, similarly, that summer holidays provide a rest from school stress and more opportunity to play outdoors,” Moltchanova added.

Contrary to the previous study results, Victoria King, research manager at the charity Diabetes UK said, “this larger study shows a stronger correlation which is interesting, especially as we still don’t know exactly why Type 1 diabetes develops.

“Investigating why we might be seeing this pattern could tell us more about what may be triggering the development of Type 1 diabetes.”(ANI)

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Malaria treatment developed using synthetic biology, fermentation

March 1, 2009 By Leave a Comment

Washington, Feb 28 (ANI): Achieving a milestone in the fight against malaria, scientists at Amyris Biotechnologies have produced 25 g/L of amorphadiene, a precursor of the antimalarial agent artemisinin, by using synthetic biology and E. coli fermentations.

It was in 2003 that the production of amorphadiene in E. coli was first described, but the amount produced was low (50 mg/L). The level was increased to 0.5g/L in 2006, but still 50-fold lower than target production levels.

In the new study, researchers have described the interplay of industrial fermentation processes and synthetic biology that achieve the required 50-fold increase in production levels.

This milestone acts as proof of concept that microbes for conversion to artemisinin can produce commercially relevant concentrations of artemisinin precursors.

The World Health Organization considers artemisinin-based combination therapies (ACTs) to be first-line treatment for malaria.

But, as the supplies of plant-derived artemisinin are subject to the seasonality and volatility common to many plant-based commodities, it leads to fluctuations in the price of artemisinin.

Commercial scale production of semi-synthetic artemisinin would have the potential to stabilize supply and supplement existing plant-derived materials to create a consistent, high-quality and affordable new source of artemisinin to help meet the projected world-wide demand for ACTs.

Originally, the microbial production of Artemisinin precursors was demonstrated in the lab of Professor Jay Keasling at the University of California, Berkeley.

Then Keasling continued the research and founded Amyris to bring the technology to the developing world.

Dr. Jack Newman, a former Post-doc in the Keasling lab and co-founder of Amyris, praised the collaboration effort and the potential of the technology.

“The enormous amount of work involved on the road from idea through execution is mind-boggling. I’m grateful to the dedicated team of researchers, philanthropists and visionaries that made this happen. They have demonstrated the potential of this technology to make a difference in the world,” he said

The article, “High-level production of amorpha-4,11-diene, a precursor of the antimalarial agent artemisinin, in Escherichia coli” appears in PLoS ONE, an open-access journal from the Public Library of Science. (ANI)

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