Annual Report 2010 - Outokumpu

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Profitability
Earnings per share, EUR -0.68 -1.86 -1.05
Outokumpu's operating profit in 2010 totalled EUR -83 million (2009: EUR -441 million). In 2010, net non-recurring items
of EUR -17 million of write-downs related to cancelled investments in Avesta Works in Sweden are included in the
operating loss (2009: EUR -20 million of restructuring provisions and write-downs). Raw material-related inventory gains
of some EUR 26 million are included in the operating profit (2009: losses of some EUR 78 million). Underlying
operational result for 2010 was some EUR -91 million (2009: EUR -343 million). Higher delivery volumes, higher base
prices and better contribution from ferrochrome production than occurred in 2009 were the main causes for the improved
result. A somewhat weaker geographical and product mix partly offset the improvement. Profit before tax totalled EUR
-143 million (2009: EUR -479 million).
Net financial income and expenses in 2010 totalled EUR -50 million (2009: EUR -25 million). Interest expenses increased
due to the higher amount of net debt and an increased proportion of fixed-rate financing in the Group's loan portfolio as
well as commitment fees for unutilised credit facilities. A non-recurring gain of EUR 8.5 million related to the sale of the
Group's holding in Okmetic Oyj is included in the financial income. The Group's net profit for the year totalled EUR -124
million (2009: EUR -336 million) and earnings per share totalled EUR -0.68 (2009: EUR -1.86). Return on capital
employed during the year was -2.1% (2009: -11.7%).
Capital structure
Key financial indicators on financial position
€ million 2010 2009 2008
Net interest-bearing debt
Long-term debt 1 529 1 038 1 219
Current debt 980 703 581
Total interest-bearing debt 2 509 1 741 1 800
Interest-bearing assets -672 -550 -714
Outokumpu Annual Report 2010 – Financial Statements – Review by the Board of Directors for 2010