(Reuters) - Finnish stainless steel maker Outokumpu (OUT1V.HE) reported a plunge in third quarter adjusted core profit of more than 50 percent on Thursday hit by a fall in ferrochrome production.
Its underlying earnings before interest, taxes, depreciation and amortization of 56 million euros ($66.1 million) was well below the 98.1 million expected by analysts in a Reuters poll.
Profitability was hurt by raw material-related inventory and metal derivative losses of 41 million euros and third-party supplier production issues in the Americas, the company said.
Revenue rose by about 5 percent to 1.48 billion euros, boosted by high deliveries, but also felt short of analysts’ expectations.
Jefferies, which has a “hold” rating on the stock, believes that regardless of the raw materials-related inventory and hedging losses the “results still disappoint more cautious buy-side expectations”.
Outokumpu said it expects to improve profitability in the fourth quarter.
Shares in Outokumpu shares were down 9.8 percent to 8.16 euros as of 1105 GMT.
Reporting by Boleslaw Lasocki and Pawel Goraj from Gdynia; editing by Jason Neely