Moses Ola's questions to Outokumpu Oyj (OUTKY) leadership • Q1 2024
Question
Moses Ola asked for a quantification of the delivery impact from the Q1 strikes, whether the Q2 delivery growth guidance includes the Americas, the risk of Mexican price weakness affecting the U.S. market, and the appropriateness of the current Ferrochrome utilization rate given inventory levels.
Answer
CFO Pia Aaltonen-Forsell explained that Q1 volumes were flat instead of the expected 10% increase due to the strike, with the impact primarily in Europe, and confirmed the 5-15% Q2 delivery growth guidance applies to the group, including the Americas. CEO Heikki Malinen stated they have not seen Mexican price weakness flow through to the U.S. market. Aaltonen-Forsell addressed Ferrochrome inventory, noting they are balancing the system with a temporary furnace closure and expect inventories to be somewhat lower by the end of Q2.