Feb. 1 (Bloomberg) -- Outokumpu Oyj, Finland’s biggest stainless-steel producer, declined again in Helsinki trading today for the biggest four-day drop since January 1991 after saying it won’t pay a dividend this year.
Outokumpu fell as much as 14 percent today, the steepest decline on the OMX Helsinki 25 Index. The stock shed 55 cents, or 8.8 percent, to 5.72 euros at 11:28 a.m. in the Finnish capital, giving the Espoo-based company a market value of 1 billion euros ($1.3 billion). The shares have declined as much as 32 percent in four days.
The company said today it will omit a dividend payout for the first time since at least 1992 after reporting its fourth consecutive annual loss. Outokumpu yesterday agreed to buy ThyssenKrupp AG’s stainless steel unit in Germany for about 2.7 billion euros to create Europe’s largest maker of the alloy.
Outokumpu’s fourth-quarter net loss widened to 113 million euros, exceeding the 63.4 million-euro loss estimated by 10 analysts in a Bloomberg survey. Analysts expected a 20-cent dividend payout for the year.
In the current quarter, the underlying operating result may be break-even or “slightly” positive, held back by one-time costs to improve efficiency, the company said.
--Editors: Marthe Fourcade, Robert Valpuesta.
#<812464.81509.2.1.95.14779.25># -0- Feb/01/2012 09:33 GMT
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