Finnish mineral resources company Outokumpu, which operates the Tara zinc mine, beat analysts’ estimates by reporting first quarter pre-tax profits of €84 million.
The increase was mainly caused by the improved result of stainless steel division, which is expected to continue, and discontinued losses in the mining division.
Outokumpu sees the outlook for the stainless steel market for the second quarter is relatively good and it expects prices to continue to increase moderately in the next two or three months.
Outokumpu expects its financial performance in the second quarter of 2002 to improve from the first quarter and is also aiming to improve profitability for the full year 2002, it said.
Industrial production has already improved in the US and in other major industrialised countries. The expectations for increased industrial investments are also higher, Outokumpu said.
Low interest rates and massive monetary and fiscal policy measures offer considerable growth potential, especially in the US, where firmer steps towards recovery have been taken than in Europe or Japan, the company said.
In the mining division's financial performance, the key factors are the recovery in the price of zinc, increased operational efficiency and finding a sustainable overall solution for the suspended Tara zinc mine, it said.
Outokumpu's target is to exit base metals mining during this and the following year.