Outokumpu Oyj Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tristan Gresser - Exane BNP Paribas - Analyst : The first one is on the cost savings you had. I think it was EUR11 million in Q1. I think in the past, you mentioned that the total cost saving would be around EUR50 million, if I'm talking about the same thing. So when would you expect the remaining EUR40 million to flow to?

Question: Tristan Gresser - Exane BNP Paribas - Analyst : Okay, that's clear. So you have a bit more cost saving coming through than in Q2. You have the strike alleviation. You have higher volumes, and you have those raw material kind of gains instead of being zero in Q1. So you have a bit of support there. I'm trying to understand in which scenario would you see your kind of stable guidance materialize. I mean, you're stable to hire, but trying to understand what could go wrong or on the sequential basis how we should think about it.

Question: Tristan Gresser - Exane BNP Paribas - Analyst : And maybe just one kind of final question on the guidance. If I look at stainless prices in Europe, the kind of stable issue may be a little bit down, but surcharges -- sorry, but scrap prices have come down quite a bit. So in terms of spread, I know there is a lot of uncertainty in the market, but when you look at your business in Europe, you mentioned pricing pressure and spread contracting in Q1. Now in April, have you seen a stabilization or an improvement in the orders you're taking in?

Question: Adahna Ekoku - Morgan Stanley - Analyst : Just first on the shipment outlook for Q2, can you help us understand if you expect this increase at a similar level across the US and Europe? And maybe if you could just touch on how the different end markets are performing across the two regions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 12:00PM, OUT1V.HE - Q1 2025 Outokumpu Oyj Earnings Call

Question: Adahna Ekoku - Morgan Stanley - Analyst : Okay, thank you. And just a quick one on working capital, if you clarify your expectations for Q2 and the rest of the year.

Question: Tristan Gresser - Exane BNP Paribas - Analyst : Sorry, it's me again. No, I was asking about the Ferrochrome division. I mean, it had strong performance in Q1. I know you mentioned that you were going to have some maintenance in Q2, but what's the outlook for the division in terms of volumes, maybe prices or costs or any kind of color you can give? And I know you mentioned some different dynamics between the spot market and your contracts, could you (technical difficulty) how has it evolved over the past year or so?

Question: Tristan Gresser - Exane BNP Paribas - Analyst : Okay. So there's no reason really to see this Q1 performance as an outlier. And could you share how much of your shipments or volumes of Ferrochrome are actually getting the premium?

Question: Tristan Gresser - Exane BNP Paribas - Analyst : All volumes. Okay. All right. And maybe just another question on the European trade policy outlook. I mean, we've seen the layout of the steel action plan, and the timing spread out between Q2 to Q4 this year. What will you be most looking at in terms of announcement in the coming month? What is the most important thing in your opinion? And also, if you can spend a little bit of time discussing the potential melt and pour rule that could have an impact on stainless. Would be keen to have your view there.

Question: Tristan Gresser - Exane BNP Paribas - Analyst : All right. That's very clear. So there is a probability of that steel happening in 2025?

Question: Dominic O'Kane - JPMorgan - Analyst : I just wanted to ask a quick question on the convertible bond. Could you just maybe give us a little bit more details on how you intend to redeem the convertible bond?