The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Anssi Raussi - SEB, Research Division - Analyst
: It's Anssi Raussi from SEB. I have a few questions. And I go one by one and I start with the basic one again. So what kind of lead times you have at
the moment? And also again about your Q3 deliveries as you guide still high prices in already received orders. So what kind of mix you have in
your Q3 deliveries in terms of timing in bookings? So are these orders from March to Q3 months or how is it? This is the first one.
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AUGUST 04, 2022 / 12:00PM, OUT1V.HE - Q2 2022 Outokumpu Oyj Earnings Call
Question: Anssi Raussi - SEB, Research Division - Analyst
: Okay. And the second one is about your delivery guidance as it is a bit on the low side, some could say. So what kind of factors we are looking at
here like? Is it all about maintenance? Or is the underlying demand affecting this? Or like how much do you expect to lose volumes due to
maintenance?
Question: Anssi Raussi - SEB, Research Division - Analyst
: Okay. And the last one from me for now, at least about still your guidance and raw material inventory and derivative losses for Q3. Any ballpark
here like something like in Q1 or...
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AUGUST 04, 2022 / 12:00PM, OUT1V.HE - Q2 2022 Outokumpu Oyj Earnings Call
Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst
: Another great set of results this quarter. So I just wanted to ask on the strategy to normalized EBITDA run rate target. So obviously in this quarter
here, you've got a tailwind of good pricing, especially in Europe where you've got greater than EUR 700 per ton steel margins. But if I look at that
mid-term target, should we essentially expect a collapse in margins just to meet that normalized target? Or is there a room possibly to upgrade
these targets within Phase 2? That would be my first question.
Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst
: And then also on the balance sheet, it's quite strong net cash into this year. Should we still expect you to maintain a net cash position mid-term?
Or how should we evaluate your capital allocation priorities, especially on the shareholder distributions?
Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst
: Okay. And then finally, just for me, do you have any exposure to the low river Rhine levels in Germany? Are there any impact from the levels to
shipments of raw material supply to your operations in Germany?
Question: Anssi Raussi - SEB, Research Division - Analyst
: One more from me. About the North America as we saw today that CRU estimates that the base price was actually stable in the U.S. during July
and will also remain at the same level in August. So how much of cost inflation we should model in for Q3 compared to Q2? So thinking about
North America's EBITDA in Q3. Of course, we have this negative timing and hedging net impact. But if we then think about the underlying EBITDA.
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