Ioannis Masvoulas's questions to OUTOKUMPU OY /FI (OUTKY) leadership • Q1 2024
Question
Ioannis Masvoulas inquired about the main priorities for the incoming leadership team and the rationale behind the Q2 guidance for negative raw material-related effects, particularly concerning the company's hedging policy amidst rising nickel prices.
Answer
CEO Heikki Malinen outlined priorities for the new leadership, including navigating the current tough economic period through cost control, and then focusing on Phase 3 strategy and capital allocation while maintaining the commitment to shareholder returns. CFO Pia Aaltonen-Forsell added the priority of keeping the balance sheet strong. On hedging, she explained that the guided loss is not solely from nickel, with some negative momentum from Ferrochrome. She described the nickel hedging policy as conservative, covering commitments but not fully hedging inventories, noting it performed well in the prior year.