Annual Report 2010 - Outokumpu

15
€ million
Operating profit
General Stainless 14 -259
Specialty Stainless -76 -149
Other operations -15 -34
Intra-group items -7 1
The Group -83 -441
€ million
Major non-recurring items in operating profit
Specialty Stainless
Write-down of expansion project in Avesta -17 -15
Redundancy provisions - -5
Total -17 -20
€ million
Major non-recurring items in financial income and expenses
Other operations
Gain on the sale of Okmetic shares 9 -
Total 9 -
Updated strategic priorities
Outokumpu's vision of being the undisputed number one in stainless steel remains unchanged. The essence of being
number one is having the best financial performance in the industry.
Outokumpu's strategic aims include achieving stable and industry-leading profitability, and high levels of customer
satisfaction. In both the Group's adjusted strategic priorities and their implementation, the focus is on improving
performance in Outokumpu's current operations and investing additional effort in developments expected to yield future
growth. The forecast of long-term growth in demand for stainless steel is viewed by the Group as an attractive
opportunity. Outokumpu's decision to double the Group's ferrochrome production capacity will also launch a growth
business as the company will become a significant supplier to external markets.
The adjustments in Outokumpu's strategic priorities emphasise the utilisation of Tornio's cost-competitiveness in highvolume
products as well as a rapid transformation to the production of special grades and products. In addition to
focusing on operational excellence and long-term improvements, related requirements include an increase in end-user
and project sales, continuing to build stable relationships with key distributors and processors and further investment in
the Group's own global service network.
Outokumpu Annual Report 2010 – Outokumpu – Management discussion