Outokumpu's third quarter 2008 interim report -...

INTERIM REPORT
October 23, 2008 at 1.00 p.m.


Third quarter highlights

- Satisfactory underlying operational result of some EUR 60 million
positive.
- Strong net cash flow of EUR 242 million from operating activities.
- Weaker stainless steel markets due to seasonality, postponed
purchases by distributors and weaker end-use demand.
- Intention to close Thin Strip business in Sheffield announced.
- Investment program under review, decisions on potential changes by
the end of 2008.



Group key figures
                                          III/08 II/08 III/07  2007
Sales                         EUR million  1 270 1 549  1 227 6 913
Operating profit              EUR million    -66   174   -256   589
Non-recurring items
in operating profit           EUR million    -66     -    -11    14
Profit before taxes           EUR million    -82   166   -277   798
Non-recurring items
in financial income
and expenses                  EUR million      -     -      -   252
Net profit for the period
from continuing operations    EUR million    -73   130   -210   660
Net profit for the period     EUR million    -74    56   -214   641
Earnings per share
from continuing operations            EUR  -0.41  0.72  -1.17  3.63
Earnings per share                    EUR  -0.41  0.31  -1.19  3.52
Return on capital employed              %   -6.3  17.2  -22.3  13.9
Net cash generated from
operating activities          EUR million    242   103    161   676
Capital expenditure,
continuing operations         EUR million    317    56     47   190
Net interest-bearing debt
at end of period              EUR million  1 096   939  1 016   788
Debt-to-equity ratio at
end of period                           %   35.0  29.1   29.8  23.6
Stainless steel deliveries     1 000 tons    323   391    238 1 419
Stainless steel
base price 1)                     EUR/ton  1 143 1 307    710 1 304
Personnel at the
end of period,
continuing operations 2)                   8 711 8 884  8 049 8 108

1) Stainless steel: CRU - German base price (2 mm cold rolled 304
sheet).
Please note: Between July - October 2007, European prices for some
stainless grades were quoted on a transaction price basis,
therefore
base prices are the calculated value of transaction price minus
alloy
surcharge for this time period (CRU).
2) End-June figures include summer trainees.


SHORT-TERM OUTLOOK

As a result of the global economic crisis, uncertainty related also
to the stainless steel market has clearly increased and visibility is
currently very short. Demand from consumer driven end-use segments,
such as white goods and construction has weakened further. Demand
from many investment-driven segments is currently healthy but there
is more uncertainty about future demand as the financial turmoil has
weakened the investment climate and the availability of project
financing is uncertain.

The falling nickel price has resulted in distributors further
postponing their purchases in expectation of lower transaction prices
for stainless steel. In Europe, inventory levels for standard grades
held by distributors continue to be at a normal level. Outokumpu is
now selling standard grades for deliveries in November.

Stainless steel base prices seem to have stabilized and prices are
roughly at the same level in Europe and Asia. Outokumpu does not
currently expect further price erosion from current levels. CRU is
forecasting the October base price for German 2mm cold rolled 304
stainless steel sheet at 1 080 EUR/t.

Delivery volumes for the fourth quarter are expected to be at about
the same level or slightly above volumes in the third quarter.

Outokumpu's underlying operational result in the fourth quarter of
2008 is expected to be slightly positive. At current nickel prices,
further nickel-related inventory losses of some EUR 50-100 million
including the impact of hedging are expected in the fourth quarter,
which would turn Outokumpu's operating profit negative. The low
nickel price is, however, expected to release substantial amounts of
working capital and result in continuing strong cash flow from
operations in the fourth quarter.


CEO Juha Rantanen:

"In these highly uncertain times, strength comes from having good
cash flow and a strong balance sheet. Supply chain management will
remain a high priority for us also going forward. Nickel, our most
important raw material, has now reached its lowest price level in
five years and this will improve our cash flow through lower working
capital.  Lower raw material costs will make stainless steel an even
more attractive and competitive material. In the short-term, however,
the decline in the nickel price is negative for our profits. We are
highly committed to our strategy of selling more to end-use and
project customers as well as promoting special and non-nickel
containing grades. At the same time, we need to evaluate whether some
of the related investments need to be postponed or redesigned due to
global economic uncertainty."


The attachments present Management analysis of the third quarter
operating result and the Interim review by the Board of Directors for
January-September 2008, the accounts and notes to the interim
accounts. This interim report is unaudited.

For further information please contact:

Päivi Lindqvist, SVP - Communications and IR
tel. [phone], mobile [phone]
[e-mail]

Ingela Ulfves, VP - Investor Relations and Financial Communications
tel: + 358 9 421 2438, mobile [phone]
[e-mail]

Esa Lager, CFO
tel: [phone]
[e-mail]


News conference and live web-cast today at 3.00 pm.

A combined news conference, conference call and live webcast
concerning the third-quarter 2008 financial results will be held on
October 23, 2008 at 3.00 pm Finnish time (8.00 am US EST, 1.00 pm UK
time, 2.00 pm CET) at Hotel Kämp, conference room Mirror Room,
Pohjoisesplanadi 29, 00100 Helsinki, Finland.

To participate via a conference call, please dial in 5-10 minutes
before the beginning of the event:

UK [phone]
US & Canada [phone]
Password Outokumpu

The news conference can be viewed live via the Internet at
www.outokumpu.com.

The stock exchange release and presentation material will be
available before the news conference at www.outokumpu.com ->
Investors -> Downloads

An on-demand webcast of the news conference will be available at
www.outokumpu.com as of October 23, 2008 at around 6.00 pm Finnish
time.

An instant replay service of the conference call will be available
until Tuesday October 28, 2008 on the following numbers:

UK replay number [phone], access code: 812738
US & Canada replay number [phone], access code: 812738

OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations & Financial Communications
tel. + 358 9 421 2438, mobile [phone]
[e-mail]
www.outokumpu.com


MANAGEMENT ANALYSIS - THIRD QUARTER OPERATING RESULT


Group key figures

EUR million                       I/07  II/07 III/07  IV/07   2007
Sales
General Stainless                1 700  1 670    879  1 073  5 321
Specialty Stainless              1 003  1 028    687    738  3 456
Other operations                    64     63     53     57    237
Intra-group sales                 -638   -669   -391   -403 -2 101
The Group                        2 129  2 092  1 227  1 465  6 913

Operating profit
General Stainless                  245    188   -224     11    220
Specialty Stainless                182    196    -51      9    337
Other operations                     1     19      8     -6     21
Intra-group items                   -4      2     11      2     11
The Group                          424    406   -256     15    589

EUR million                       I/08  II/08 III/08
Sales
General Stainless                1 304  1 222    933
Specialty Stainless                786    778    630
Other operations                    64     63     69
Intra-group sales                 -465   -514   -362
The Group                        1 689  1 549  1 270

Operating profit
General Stainless                   81    125    -35
Specialty Stainless                 42     44    -63
Other operations                   -20      4     29
Intra-group items                   -3      1      3
The Group                          100    174    -66

Stainless steel
deliveries

1 000 tons                        I/07  II/07 III/07  IV/07   2007
Cold rolled                        220    186    117    180    703
White hot strip                     94     94     49     78    314
Quarto plate                        39     41     30     36    146
Tubular products                    20     17     13     15     65
Long products                       16     15     10     12     54
Semi-finished
products                            40     46     21     31    137
Total deliveries                   430    399    238    352  1 419

1 000 tons                        I/08  II/08 III/08
Cold rolled                        228    192    177
White hot strip                    120     94     64
Quarto plate                        33     35     27
Tubular products                    19     19     16
Long products                       15     15     15
Semi-finished
products                            34     35     25
Total deliveries                   449    391    323

Market prices and
exchange rates

                                  I/07  II/07 III/07  IV/07   2007
Market prices 1)
Stainless steel
  Base price           EUR/t     1 930  1 518    710  1 058  1 304
  Alloy surcharge      EUR/t     2 277  2 913  2 967  1 939  2 524
  Transaction price    EUR/t     4 207  4 432  3 677  2 997  3 828

Nickel                 USD/t    41 440 48 055 30 205 29 219 37 230
                       EUR/t    31 619 35 646 21 983 20 175 27 161
Ferrochrome
(Cr-content)           USD/lb     0.77   0.82   1.00   1.05   0.91
                       EUR/kg     1.30   1.34   1.60   1.60   1.46
Molybdenum             USD/lb    26.69  30.97  31.97  32.66  30.57
                       EUR/kg    44.90  50.65  51.30  49.71  49.17
Recycled steel         USD/t       278    287    271    283    280
                       EUR/t       212    213    197    195    204

Exchange rates
EUR/USD                          1.311  1.348  1.374  1.448  1.371
EUR/SEK                          9.189  9.257  9.264  9.288  9.250
EUR/GBP                          0.671  0.679  0.680  0.708  0.684

                                  I/08  II/08 III/08
Market prices 1)
Stainless steel
  Base price           EUR/t     1 243  1 307  1 143
  Alloy surcharge      EUR/t     1 702  1 888  1 582
  Transaction price    EUR/t     2 945  3 195  2 725

Nickel                 USD/t    28 957 25 682 18 961
                       EUR/t    19 335 16 440 12 599
Ferrochrome
(Cr-content)           USD/lb     1.21   1.92   2.05
                       EUR/kg     1.78   2.71   3.00
Molybdenum             USD/lb    33.81  33.40  33.75
                       EUR/kg    49.77  47.14  49.45
Recycled steel         USD/t       393    565    465
                       EUR/t       262    361    309

Exchange rates
EUR/USD                          1.498  1.562  1.505
EUR/SEK                          9.400  9.352  9.474
EUR/GBP                          0.757  0.793  0.795
1) Sources of market prices:
Stainless steel: CRU - German base price, alloy surcharge and
transaction price (2 mm cold rolled 304 sheet), estimates for
deliveries during the period.
Please note: Between July-October 2007, European prices for some
stainless grades were quoted on a transaction price basis,
therefore base prices are the calculated value of transaction
price minus alloy surcharge for this time period (CRU).
Nickel: London Metal Exchange (LME) cash quotation
Ferrochrome: Metal Bulletin - Ferrochrome lumpy chrome charge,
basis 52% chrome
Molybdenum: Metal Bulletin - Molybdenum oxide - Europe
Recycled steel: Metal Bulletin - Steel scrap HMS 1&2 fob Rotterdam



Global financial turmoil further weakened demand for stainless steel

Global growth in demand for stainless steel continued to weaken
during the third quarter and markets remained oversupplied. The whole
business environment was affected by significantly weakening
financial markets. The apparent consumption of stainless steel in the
third quarter is estimated to have remained fairly stable globally
but to have declined by 17% in Europe compared to II/2008. Global
melting production was cut by 10% due to the poor business
environment, and in Europe production was 18% down from the previous
quarter. In addition to demand weakness, the slowdown was also a
result of normal seasonality and the distribution sector postponing
its purchases due to the falling nickel price. Demand softened
further, especially in consumer-driven segments such as construction
and white goods. In investment-driven segments, lower levels of
project activity were evident due to the uncertain market situation.

The average base price for 2mm cold rolled 304 stainless steel sheet
in Germany in the third quarter declined to 1 143 EUR/ton (II/2008: 1
307 EUR/ton). As a result of the falling nickel price, the average
alloy surcharge for the third quarter declined to 1 582 EUR/ton
(II/2008: 1 888 EUR/ton). The average transaction price in the period
was 2 737 EUR/ton (II/2008: 3 195 EUR/ton). (CRU)

Among alloying materials, the price of nickel declined by 26% from
around 22 500 USD/ton to below 16 000 USD/ton and the average price
of nickel was 18 961 USD/ton in III/2008 (II/2008: 25 682 USD/ton).
Since the end of September, nickel has declined further and is
currently about 10 000 USD/t. Ferrochrome markets turned to
oversupply during the review period due to weakening demand for
stainless steel. The quarterly contract price for ferrochrome for the
third quarter was 2.05 USD/lb (II/2008: 1.92 USD/lb). The quarterly
contract price for the fourth quarter has been preliminary settled at
1.85 USD/lb. The average price of molybdenum increased slightly to
33.75 USD/lb. The price of recycled steel fell to 465 USD/ton, 18%
down on II/2008.

Satisfactory underlying operational result in weakening stainless
steel markets

Group sales in the third quarter totaled EUR 1 270 million, 18% down
on II/2008. Stainless steel deliveries were down by 17% to 323 000
(II/2008: 391 000 tons). After the summer, there was only modest
recovery in demand for stainless as a result of the global financial
crisis. This and the normal seasonality were the main reasons for
lower deliveries. Also, distributors had no incentive to return to
the market as the nickel price continued to fall. Annual maintenance
breaks at all Outokumpu units affected total production in the review
quarter.

Underlying operational result was some EUR 60 million positive.
Operating loss in the third quarter was EUR 66 million (II/2008: EUR
174 million profit) and included nickel-related inventory losses of
some EUR 60 million (II/2008: raw material-related gains of some EUR
20 million). The inventory losses are lower than expected due to
unrealized gains of some EUR 20 million from nickel hedging.
Provisions and write-downs of EUR 66 million related to the intention
to close the thin strip business in Sheffield are included in the
third quarter operating loss.

Return on capital employed was negative (II/2008: 17.2%). Earnings
per share was EUR 0.41 negative (II/2008: EUR 0.31 positive).

Net cash generated from operating activities improved to EUR 242
million (III/2007: EUR 103 million) due to the declining nickel
price.

Sales by General Stainless in the third quarter totaled EUR 933
million (II/2008: EUR 1 222 million), deliveries were down by 21% and
totaled 285 000 tons (II/2008: 359 000 tons). Operating loss was EUR
35 million (II/2008: EUR 125 million profit) of which Tornio Works
posted a EUR 22 million loss (II/2008: EUR 114 million profit). The
majority of nickel-related inventory losses were related to General
Stainless.

Sales by Specialty Stainless totaled EUR 630 million (II/2008: EUR
778 million), deliveries were down by 21% to 121 000 tons (II/2008:
153 000 tons). Specialty Stainless posted an operating loss of EUR 63
million (II/2008: EUR 44 million profit) due to provisions and
write-downs of EUR 66 million related to the intention to close the
thin strip business in Sheffield.

Operating profit in Other operations totaled EUR 29 million (II/2008:
EUR 4 million) including unrealized gains of some EUR 20 million from
raw material-related derivatives.

Investment program under review

Outokumpu decided to move to the next phase of its strategic
development in September 2007. The focus in this new strategic phase
is on building a more stable and profitable business model. The key
components are:

- balancing the product mix to include more value added special
products and ferritic (non-nickel) grades
- increasing the share of end-user and project sales and stabilizing
sales to key distributors
- growth outside Europe
- maintaining cost leadership in standard grades

Since September 2007, Outokumpu has launched an investment program
totaling more than EUR 2 billion to implement this strategy. The
majority of the payments related to the investments are planned to be
made in 2009-2010. As a result of the prevailing turmoil in financial
markets, there is currently uncertainty about both global economic
growth and investment activity in the coming years, which means there
is also uncertainty about stainless steel demand in the short-term.
Both the equipment and construction markets have been overheated in
the recent years, and current price levels imply unanticipated cost
inflation for some investment projects. Outokumpu expects that
equipment and construction prices will decline in the future. For all
these reasons, the Group has decided to review its investment program
during the autumn of this year. Some of the investments that have
already been decided on may be postponed to achieve optimal timing
with respect to both costs and the demand environment.

The review concerns the following investments: EUR 1.1 billion to
broaden the product range (high-purity ferritic and bright-annealing
in Tornio, Finland, special grades in Avesta, Sweden and quarto plate
in Degerfors, Sweden).  Additionally, the SoGePar acquisition is
anticipated to yield further synergy benefits thus enabling Outokumpu
to optimize the planned EUR 155 million service center investments in
Europe.

Outokumpu's strategy of increasing its sales of value-added special
products and ferritics as well as end-user and project sales remains
intact. The company has strong confidence in the long-term growth of
duplex (low nickel) and ferritic grades and is committed to
developing these markets. Outokumpu will now analyze the extent to
which the sales of these grades can be increased within the limits of
current capacity through changes in product mix and better
utilization of assets.

Outokumpu is not considering postponement of the investment that will
double ferrochrome production capacity in Tornio, due to its
attractive return and short payback for the investment.

Decisions on the potential postponements and/or redesigns of
investments will be made by the end of 2008.


Intention To Close The Thin Strip Business In Sheffield

In September, Outokumpu announced its intention to close its thin
strip business at Meadowhall in Sheffield in the UK. Due to
overcapacity in the stainless precision strip market this business
has been loss-making for several years. Closure of the Sheffield Thin
Strip business is expected to take place in the first quarter of
2009. The proposal is part of Outokumpu's actions on performance
improvement to ensure global competitiveness.

The proposed closure would result in some 230 job losses at the
Meadowhall site. The closure of operations is expected to result in a
reduction of EUR 16 million in annual fixed costs from the second
quarter of 2009 onwards. Write-downs and provisions of EUR 66
million, of which EUR 28 million will be cash, have been recorded in
the third quarter of 2008.

The Meadowhall plant produces specialized, very thin forms of
stainless steel strip products. In 2007, its stainless steel
deliveries totaled 12 000 tons. The intention is to transfer most of
this business to the Outokumpu Kloster unit in LÃ¥ngshyttan, Sweden,
which will enable the Group to utilize synergies and deliver the full
benefits of Kloster's production capacity. Outokumpu will continue to
have a strong presence in Sheffield with its stainless steel melt
shop, long products production and a service center as well as sales
operations. These operations employ a total of 650 people.

Tornio Works' annealing and pickling line project is nearing
completion

The EUR 90 million investment project, announced on February 1, 2007,
to replace the No. 2 annealing and pickling line in Tornio is nearing
completion. The old line was decommissioned in September and the
first production runs on the new line will take place before the
year-end. Full capacity will be available by the end of 2009. The
shutdown and ramp-up will not have a significant impact on the total
capacity of the cold rolling plant in 2008 or 2009. The new annealing
and pickling line will have an annual capacity of 300 000 tons and
will be capable of producing both austenitic and ferritic products
with a minimum set-up time.

Acquisitions and divestments

In April, Outokumpu signed an agreement to acquire the SoGePar Group,
an Italian distributor of stainless steel from its owners, the
Borromeo family. After receiving regulatory clearance, the
transaction was completed at the end of July. The closing balance
sheet was approved in October, and the final consideration in cash
was EUR 224 million and is expected to be EUR 87 million as debt. The
total consideration is lower than initially announced due to changes
in working capital and net debt. SoGePar has been consolidated into
Outokumpu's accounts with effect from August 1, 2008.

Events after the period

The Finnish Financial Supervision Authority has on October 17, 2008
granted an exception to the State of Finland and Solidium Oy not to
make a public tender offer for Outokumpu's shares and share-based
securities. The exemption is related to the State's intention to
transfer all of its shares in Outokumpu to Solidium Oy, in which it
is the sole shareholder. The exemption will take effect following the
appeal period and handling of potential appeals. The State of Finland
holds 31.1% of Outokumpu's shares and voting power.

INTERIM REVIEW BY THE BOARD OF DIRECTORS JANUARY - SEPTEMBER 2008
(Unaudited)
Weakening demand for stainless steel began in the summer

Demand for stainless steel was at a good level during the first half
of 2008, but demand started to weaken in June as global economic
growth slowed in all regions. The nickel price started to decline in
May, which resulted in distributors postponing their orders, and
after the summer the global financial market collapsed leading to
further weakening stainless steel demand. Compared to I-III/2007,
apparent consumption of stainless steel in I-III/2008 increased by 1%
in Europe and by 5% globally. In 2007, demand for stainless was very
good during the first six months but the market clearly weakened when
nickel price collapsed from record high levels following the summer.
The average German base price for 2mm 304 cold rolled sheet in
I-III/2008 was 1 231 EUR/ton, 11% lower than in I-III/2007. The
transaction price for stainless steel averaged 2 955 EUR/ton in
I-III/2008 and was 28% lower than in I-III/2007 because of the much
higher nickel price in 2007. (CRU)
Satisfactory underlying operational result

Compared to the corresponding period in 2007, Group sales in the
first nine months of 2008 declined by 17% to EUR 4 508 million
(I-III/2007: EUR 5 448 million) due to lower transaction prices.
Stainless steel deliveries increased by 9% to 1 163 000 tons
(I-III/2007: 1 067 000 tons).
Operating profit for I-III/2008 totaled EUR 208 million (I-III/2007:
EUR 574 million), significantly lower than in the corresponding
period in 2007. The primary reason for the decline in operating
profit was the significantly higher base prices in 2007. In
I-III/2008, some EUR 66 million of provisions and write-downs related
to the intention to close the thins strip business in Sheffield are
included in the operating profit. In I-III/2007, operating profit
included some net non-recurring gains of EUR 14 million (EUR 11
million of costs related to restructuring at Thin Strip in the UK and
EUR 25 million gains on the sale of the Hitura mine in Finland).
Nickel-related inventory losses of some EUR 140 million are included
in operating profit in I-III/2008, in I-III/2007 this figure was EUR
80 million negative. Profit before taxes totaled EUR 165 million
(I-III/2007: EUR 791 million).
Net financial income and expenses in the first nine months of 2008
totaled EUR 42 million negative (I-III/2007: EUR 39 million negative
excluding non-recurring items). In I/2008, an impairment loss of EUR
12 million was booked in other financial expenses due to the decline
in the share price of Belvedere Resources Ltd, classified as an
available-for-sale financial asset. Financial income in 2007 included
a EUR 142 million non-recurring gain from the sale of the remaining
12% holding in Outotec Oyj and a EUR 110 million non-recurring gain
from the Talvivaara transaction. Net profit for the period totaled
EUR 45 million (I-III/2007: EUR 658 million) and net profit from
continuing operations totaled EUR 118 million (I-III/2007: EUR 653
million). Net profit includes a capital loss of EUR 66 million from
the sale of the remaining copper tube assets (Discontinued
operations) to Cupori Group in June 2008. Earnings per share totaled
EUR 0.25 (I-III/2007: EUR 3.61) and earnings per share from
continuing operations totaled EUR 0.65 (I-III/2007: EUR 3.59). Return
on capital employed in I-III/2008 was 6.6% (I-III/2007: 17.4%).
Net cash generated from operating activities in I-III/2008 totaled
EUR 451 million (I-III/2007: EUR 377 million) through the release of
working capital as a result of the declining nickel price.
Net interest-bearing debt totaled EUR 1 096 million at the end of
September (September 30, 2007: EUR 1 016 million). Outokumpu's
gearing at the end of September was 35.0% (September 30, 2007:
29.8%). Most of Outokumpu's debt maturities extend to the 2009-2013
period. The Group has committed undrawn credit facilities totaling
some EUR 1.1 billion. Additionally, cash and cash equivalents totaled
EUR 107 million at the end of September 2008.

Investment projects

Capital expenditure for the first nine months of 2008 totaled EUR 415
million (I-III/2007: EUR 147 million) including the acquisition of
SoGePar. New investment projects approved for 2008-2011 are detailed
below.

In January, a decision was made to invest EUR 370 million over a
period of three years to broaden the product range at Tornio Works.
Outokumpu will start producing high-quality ultra-clean ferritic
stainless steel grades, as well as bright-annealed austenitic and
ferritic stainless products. This investment, together with the
on-going replacement of the No. 2 annealing and pickling line, will
increase Tornio Works' total installed capacity for finished products
by 100 000 tons to some 1.3 million tons by the end of 2010.
The investment also includes a service center (from 2010-) located
near Stuttgart in Southern Germany which will have an annual
processing capacity of 60 000 tons and a focus on bright-annealed
austenitic and ferritic products.
In February, Outokumpu decided to expand and relocate its stock and
processing capability in central France by investing some EUR 14
million over a two-year period. Combined annual coil and plate
processing capacity in standard and special stainless steel grades
will total 40 000 tons and is scheduled to be in place by the end of
2009.
In February, Outokumpu OSTP and the Saudi Arabian tube manufacturer
Armetal, a company in the Al-Hejailan Group, agreed to form Outokumpu
Armetal Stainless Pipe Co., Ltd., a 51/49 stainless steel tubular
joint venture located in Riyadh. The joint venture began operation on
October 1, 2008.
In June, Outokumpu's Board of Directors approved plans to expand the
Group's ferrochrome production capacity in Tornio, Finland. This EUR
420 million investment will double the plant's annual capacity to 530
000 tons with the additional capacity scheduled to be available
during the first quarter of 2011. This expansion of ferrochrome
capacity will make Outokumpu comfortably self-sufficient in its
primary chromium needs. The investment will support Outokumpu's
strategy realization, maintain cost leadership, secure the sourcing
of raw materials and capitalize on the Group's chromium mine in Kemi.

In June, Outokumpu announced an investment of some EUR 10 million in
Long Products' finishing facilities in Sheffield in the UK. The new
equipment is scheduled to be operational in mid 2009. This investment
is creating an integrated manufacturing route for small bar and
rebar, complementing the existing melt shop and wire rod mill,
located in Sheffield.

Due to delays in land purchasing, start-up of the service center in
Poland has been rescheduled from the end of 2008 to the end of 2009.

The coil service center being built in India is to be expanded from
the original plan to become a combined coil and plate service center,
the first of its kind in India. The service center is expected to be
operational in the first quarter of 2010.

Additional capital expenditure of EUR 60 million for all service
center investments (France, Germany, Poland, India and China) was
approved in July as a result of changes in scope and increasing costs
(mainly related to construction and equipment purchase). As a result,
capital expenditure for service center network expansion, excluding
acquisition of the Italian distributor SoGePar, will total
approximately EUR 220 million.

The feasibility study on building a cold rolling mill in India was
finalized. In July, Outokumpu decided not to proceed with the
investment. Other options for strengthening Outokumpu's presence in
the growing Indian market are currently being explored.

The EUR 90 million investment project, announced on February 1, 2007,
to replace the No. 2 annealing and pickling line in Tornio is nearing
completion. The old line was decommissioned in September and the
first production runs in the new line will take place before the
year-end. Full capacity will be available by the end of 2009. The
shutdown and ramp-up of production will not have a significant impact
on the total capacity of the cold rolling plant in 2008 or 2009. The
new annealing and pickling line will have an annual capacity of 300
000 tons and will be capable of producing both austenitic and
ferritic products with a minimum set-up time.
Outokumpu has decided to review the investment program that was
launched after the Group announced the next phase of its strategy
development in September 2007. The total investment program currently
under review is some EUR 1.2 billion. Decisions on potential
postponement and/or redesigns of investments will be made by the end
of 2008.

Energy supply

In July, Outokumpu signed a deal with Vattenfall relating to
electricity deliveries in Finland and Sweden totaling some fifteen
terawatt hours (TWh) over a ten-year period. In addition to these
extensive deliveries of electrical power, Vattenfall and Outokumpu
also agreed on electricity portfolio management services to be
provided by Vattenfall, as well as on co-operation to achieve
improved efficiency in the use of energy.
Outokumpu is currently expanding its stainless steel operations in
Finland and Sweden and this has generated a need for additional
electricity. This deal with Vattenfall covers an important share of
the Group's electricity needs until deliveries from the possible
Fennovoima nuclear power plant project will begin.
Acquisitions and divestments

In April, Outokumpu signed an agreement to acquire the SoGePar Group,
an Italian distributor of stainless steel from its owners, the
Borromeo family. After having received regulatory clearances the
transaction was completed at the end of July. The closing balance
sheet was approved in October 2008, and the final consideration in
cash was EUR 224 million and is expected to be EUR 87 million as
debt. The total consideration is lower than initially announced due
to changes in working capital and net debt. SoGePar has been
consolidated into Outokumpu's accounts with effect from August 1,
2008.

SoGePar operates stainless steel service centers in Castelleone in
Italy and in Rotherham in the UK. SoGePar also has stock operations
in Italy, the UK, Belgium, Finland, France and Ireland, as well as a
commercial office in Germany and a representative office in Turkey.
Sales by the SoGePar Group in 2007 totaled EUR 560 million, with an
operating profit of EUR 44 million and deliveries totaling 134 000
tons.

In June, Outokumpu signed an agreement to acquire the operations of
Avesta Klippcenter AB in Avesta, Sweden. Transfer of ownership in
connection with this transaction took place on July 1, 2008.

Intention to close the Thin Strip business in Sheffield

In September, Outokumpu announced its intention to close its thin
strip business at Meadowhall in Sheffield in the UK. This business
has been loss-making for several years due to overcapacity in the
stainless precision strip market. The closure of the Sheffield Thin
Strip business is expected to take place in the first quarter of
2009.

The proposed closure will result in some 230 job losses at the
Meadowhall site. The closure of operations is expected to result in a
EUR 16 million reduction in annual fixed costs from the second
quarter of 2009 onwards. Write-downs and provisions of EUR 66
million, of which EUR 28 million will be cash, have been recorded in
the third quarter of 2008.

Discontinued operations
In April, Outokumpu signed an agreement whereby the Group's remaining
copper tube assets were sold to Cupori Group Oy. This transaction was
closed on June 3, 2008 and Outokumpu received EUR 56 million as
consideration for the sale. A capital loss of EUR 66 million was
booked on the transaction. Both these figures are subject to final
review, once the closing balance sheet, expected by the end of the
fourth quarter of 2008, has been approved. Assets divested comprise
the copper plumbing installation and industrial tube manufacturing
companies in Pori (Finland), Zaratamo (Spain), Västerås (Sweden) and
Liège (Belgium), as well as the copper tube sales companies in
France, Germany and Italy. In 2007, these businesses generated sales
totaling EUR 510 million, recorded a net loss of EUR 5 million and
employed 730 people.
Risks and uncertainties

Outokumpu's operations are conducted in accordance with the
Board-approved risk management policy, which defines the objectives,
approaches and areas of responsibility in risk management. Outokumpu
categorizes risks as strategic/business, operational or financial.
Risks and uncertainties may, if they materialize, have a substantial
impact on earnings and cash flows. Key risks are assessed on a
regular basis.

Important strategic and business risks include overcapacity in
stainless steel production, product substitution, the cyclical nature
of stainless steel demand and Eurocentricity in operations and sales.
New stainless steel production capacity is being built in China and
this has lead to overcapacity in cold rolled stainless production. To
mitigate risks related to the cyclical nature of the stainless steel
business and the risk of product substitution, Outokumpu is aiming to
increase sales to end-users and widen the Group's product offering.
This strategy is supported by the Group's new organization, which
ensures that customers are served in an optimal way. Eurocentricity
in operations and sales is considered a risk for Outokumpu's growth
and success. To mitigate any possible impacts, Outokumpu is aiming to
also grow also outside Europe.

Operational risks arise as a consequence of inadequate or failed
internal processes, employee actions, systems or other events such as
natural catastrophes, and misconduct or crime. Property damage and
possible business interruptions caused by fire at some major site is
a key risk concern for the Group. Outokumpu has systematic fire and
security audit programs in place and part of the hazard risk is
covered by insurance. During the third quarter, actions such as the
approval and launching of the site security project were taken to
improve physical security at Group sites.

Outokumpu has a number of investment and change projects under way
and failures or delays in these projects could negatively impact
strategy implementation and the achievement of financial targets.
Outokumpu manages these risks by having dedicated resources for
overall project support and for monitoring the Group's whole project
portfolio. During the fourth quarter, ongoing projects are being
assessed and corrective actions will be taken if needed.

Financial risks include exposure to market prices, the ability to
maintain adequate liquidity and exposure to the risk of default. The
most important financial market risks for Outokumpu include
variations in the price of nickel, variations in the exchange rate
between the Swedish krona and the euro, and the value of the US
dollar. Outokumpu also has exposure to equity and loan security
prices. Part of the Group's market risk is mitigated through the use
of financial hedging. Liquidity and refinancing risk are taken into
account in capital management decisions. It is Outokumpu's aim that a
significant part of the credit risk be mitigated through insurance
and other arrangements. In addition to commercial receivables,
Outokumpu is exposed to credit risk related to loan receivables,
which may be negatively impacted if turmoil in the financial markets
continues.

Outokumpu is closely monitoring the turbulence in global financial
markets. Management's assessment is that the current turmoil may
impose some limitations on implementation of the Group's current
decisions and plans. Increases in credit margins have not yet had any
major impact on Outokumpu's funding costs, but if the financial
crises continue, some impact on funding costs is likely during 2009.

In the third quarter, some changes in nickel price risk management
were implemented. The new policies allow, for example partial hedging
of un-priced nickel in the supply chain to reduce earnings
volatility. Increased hedging of the nickel price risk helped to
mitigate part of the nickel related losses in the third quarter.

Environment, health and safety

In the European Union, the carbon dioxide allowances allocated to
Outokumpu's installations in Sweden and Finland for the Kyoto-period
2008-2012, are expected to be sufficient for the Group's planned
production. Actions have been taken to apply for allowances that also
cover the expansion of ferrochrome production in Tornio.

Emissions to air and discharges to water in the review period
remained mostly within permitted limits and the breaches that
occurred were temporary, were identified quickly and caused only
minimal environmental impact. Outokumpu is not a party in any
significant juridical or administrative proceeding concerning
environmental issues, nor is it aware of any environmental risks that
could have a material adverse effect on the Group's financial
position.

Because of the Group's new investment projects, several applications
for environmental permits have been submitted, most of them in
Finland and Sweden. Terneuzen Mill and the Sheffield meltshop were
externally audited and granted EN ISO 14001 certification. Avesta
Works and New Castle are applying for new permits due to capacity
increases.

Environmental and energy-saving targets for the Group's Corporate
Responsibility theme year are: in energy saving a target of 2%
reduction in energy consumed per ton of processed steel, in materials
efficiency a target of a 10% reduction in land-fill waste per ton of
processed steel. A review of progress after six months show very good
results.

Occupational safety is a major focus area within the Group. In
I-III/2008, the lost-time injury rate (i.e. lost-time accidents per
million working hours) was 9 (I-III/2007: 11). The target rate for
the whole of 2008 is less than eight. In 2009, the target will be
less than five.

To achieve further improvements in safety, a Comprehensive Safety
Management Evaluation was carried out in the autumn of 2008. The
results will be available in November.
Personnel

Outokumpu's continuing operations employed an average of 8 529 people
during January-September 2008 (I-III/2007: 8 310) and there were 8
711 employees at the end of September (September 30, 2007: 8 049). As
a result of the SoGePar acquisition the number of employees increased
by some 320. These figures include some 800 summer trainees employed
in the Group's units during the June-August period.
Claim regarding the sold fabricated copper products business

The fabricated copper products business sold in 2005, comprised among
others Outokumpu Copper (USA), Inc. This company has been served with
one individual damage claim for ACR Tubes under US antitrust laws.
Outokumpu believes that the allegations in this case are groundless
and will defend itself in any proceeding. In connection with the
transaction to sell the fabricated copper products business to Nordic
Capital, Outokumpu has agreed to indemnify and hold harmless Nordic
Capital with respect to this claim.

Customs investigation of exports to Russia by Outokumpu Tornio Works
In March 2007, Finnish Customs authorities initiated a criminal
investigation into the Group's Tornio Works' export practices to
Russia. The preliminary investigation is connected with another
preliminary investigation concerning a forwarding agency based in
South-eastern Finland. It is suspected that defective and/or forged
invoices have been prepared at the forwarding agency as regards
export of stainless steel to Russia. The preliminary investigation is
focusing on possible complicity by Outokumpu Stainless Oy in the
preparation of defective and/or forged invoices by the forwarding
agency in question. The investigation is expected to last until the
autumn 2008. Directly after the Finnish Customs authorities started
their investigations, Outokumpu initiated its own investigation into
the trade practices connected with stainless steel exports from
Tornio to Russia. In June 2007, after carrying out its investigation,
a leading Finnish law firm Roschier Attorneys Ltd., concluded that it
had not found evidence that any employees of Tornio Works or the
Company had committed any of the crimes alleged by the Finnish
Customs.
Organizational changes and appointments
Outokumpu has re-aligned its organization using an integrated model,
which is designed to serve the Group's customers in an optimal way.
The new organizational structure became fully operational on April 1,
2008.
Jamie Allan was appointed Executive Vice President - Supply Chain
Management and a member of Outokumpu's Group Executive Committee with
effect from January 1, 2008.

Ms Pii Kotilainen has been appointed Executive Vice President - Human
Resources and member of the Group Executive Committee as of March 1,
2009. She joins Outokumpu on January 1, 2009 and reports to CEO Juha
Rantanen. Ms Kotilainen succeeds Timo Vuorio who will retire at the
end of April 2009.
Annual General Meeting
The Annual General Meeting (AGM) on March 27, 2008 approved a
dividend of EUR 1.20 per share for 2007. Dividends totaling EUR 216
million were paid on April 8, 2008.

The AGM also authorized the Board of Directors to decide to
repurchase the Company's own shares as follows the maximum number of
shares to be repurchased is 18 000 000, currently representing 9.93%
of the Company's total number of registered shares. Based on earlier
authorizations, the Company currently holds 1 218 603 of its own
shares. The AGM authorized the Board of Directors to decide to issue
shares and grant special rights entitling to shares. The maximum
number of new shares to be issued through the share issue and/or by
granting special rights entitling to shares is 18 000 000, and, in
addition, the maximum number of treasury shares to be transferred is
18 000 000. The authorization includes the right to resolve upon a
directed share issue. These authorizations are valid until the next
Annual General Meeting, however no longer than May 31, 2009. To date
the authorizations have not been used.

The AGM decided on the number of the Board members, including the
Chairman and Vice Chairman, to be eight. Evert Henkes, Ole Johansson,
Victoire de Margerie, Anna Nilsson-Ehle, Leo Oksanen and Leena
Saarinen were re-elected as members to the Board of Directors, and
Jarmo Kilpelä and Anssi Soila were elected as new members. The Annual
General Meeting elected Ole Johansson as Chairman and Anssi Soila as
Vice Chairman of the Board. The AGM also resolved to form a
Shareholders' Nomination Committee to prepare proposals on the
composition and remuneration of the Board of Directors for
presentation to the next AGM.

KPMG Oy Ab, Authorized Public Accountants, was re-elected as the
Company's auditor for the term ending at the close of the next AGM.
At its first meeting, the Board of Directors of Outokumpu appointed
two permanent committees consisting of Board members. Leena Saarinen
(Chairman), Jarmo Kilpelä, Victoire de Margerie and Anssi Soila were
elected as members of the Board Audit Committee. Ole Johansson
(Chairman), Evert Henkes and Anna Nilsson-Ehle were elected as
members of the Board Nomination and Compensation Committee.
Shares and shareholders

According to the Nordic Central Securities Depository, Outokumpu's
shareholders by group at the end of September 2008 were the Finnish
State (31.1%), foreign investors (40.2%), Finnish public sector
institutions (13.7%), Finnish private households (7.3%), Finnish
financial and insurance institutions (3.2%), Finnish corporations
(2.0%) and Finnish non-profit organizations (1.7%). The list of
largest shareholders is updated daily on Outokumpu's internet pages
www.outokumpu.com.
At the end of September, Outokumpu's closing share price was EUR
11.06. The average share price during I-III/2008 was EUR 22.65
(I-III/2007: EUR 25.47). At the end of September, the market
capitalization of Outokumpu Oyj shares totaled EUR 1 993 million
(September 30, 2007: EUR 4 562 million). During the first nine months
of 2008, 382.7 million (I-III/2007: 381.3 million) Outokumpu shares
were traded on the Nasdaq OMX Helsinki Ltd. At the end of September,
Outokumpu's fully paid share capital totaled EUR 308.5 million and
consisted of 181 446 883 shares. The average number of shares
outstanding during I-III/2008 was 180 169 202.
Events after the period

The Finnish Financial Supervision Authority has on October 17, 2008
granted an excemption to the State of Finland and Solidium Oy not to
make a public tender offer for Outokumpu's shares and share-based
securities. The exemption is related to the State's intention to
transfer all of its shares in Outokumpu to Solidium Oy, in which it
is the sole shareholder. The exemption will take effect following the
appeal period and handling of potential appeals. The State of Finland
holds 56 440 597 shares of Outokumpu corresponding to 31.1% of shares
and votes.
SHORT-TERM OUTLOOK

As a result of the global economic crisis, uncertainty related also
to the stainless steel market has clearly increased and visibility is
currently very short. Demand from consumer driven end-use segments,
such as white goods and construction has weakened further. Demand
from many investment-driven segments is currently healthy but there
is more uncertainty about future demand as the financial turmoil has
weakened the investment climate and the availability of project
financing is uncertain.

The falling nickel price has resulted in distributors further
postponing their purchases in expectation of lower transaction prices
for stainless steel. In Europe, inventory levels for standard grades
held by distributors continue to be at a normal level. Outokumpu is
now selling standard grades for deliveries in November.

Stainless steel base prices seem to have stabilized and prices are
roughly at the same level in Europe and Asia. Outokumpu does not
currently expect further price erosion from current levels. CRU is
forecasting the October base price for German 2mm cold rolled 304
stainless steel sheet at 1 080 EUR/t.

Delivery volumes for the fourth quarter are expected to be at about
the same level or slightly above volumes in the third quarter.

Outokumpu's underlying operational result in the fourth quarter of
2008 is expected to be slightly positive. At current nickel prices,
further nickel-related inventory losses of some EUR 50-100 million
including the impact of hedging are expected in the fourth quarter,
which would turn Outokumpu's operating profit negative. The low
nickel price is, however, expected to release substantial amounts of
working capital and result in continuing strong cash flow from
operations in the fourth quarter.

In Espoo, October 23, 2008
Board of Directors


CONSOLIDATED FINANCIAL
STATEMENTS (unaudited)

Condensed income statement
                                  Jan-   Jan-  July-  July-   Jan-
                                  Sept   Sept   Sept   Sept    Dec
EUR million                       2008   2007   2008   2007   2007
Continuing operations:
Sales                            4 508  5 448  1 270  1 227  6 913
Other operating income              20     65     25     16     82
Costs and expenses              -4 285 -4 917 -1 329 -1 486 -6 364
Other operating expenses           -35    -22    -31    -14    -43
Operating profit                   208    574    -66   -256    589

Share of results in
associated companies                -1      5     -2     -2      4
Financial income and expenses
  Interest income                   15     18      5      6     25
  Interest expenses                -53    -63    -20    -20    -82
  Market price gains and losses     -1     -2      1     -4      0
  Other financial income            11    263      0      0    268
  Other financial expenses         -14     -4      0     -1     -5
Profit before taxes                165    791    -82   -277    798

Income taxes                       -47   -138      9     67   -138
Net profit for the period
from continuing operations         118    653    -73   -210    660

Discontinued operations:
Net profit for the period
from discontinued operations       -73      5     -1     -4    -18

Net profit for the period           45    658    -74   -214    641

Attributable to:
Equity holders of the Company       45    654    -74   -214    638
Minority interest                    -      4      -     -0      4

Earnings per share
for profit attributable
to the equity
holders of the Company:
Earnings per share, EUR           0.25   3.61  -0.41  -1.19   3.52
Diluted earnings per share, EUR   0.25   3.59  -0.41  -1.19   3.50

Earnings per share from
continuing operations
attributable to the equity
holders of the Company:
Earnings per share, EUR           0.65   3.59  -0.41  -1.17   3.63

Earnings per share from
discontinued operations
attributable to the equity
holders of the Company:
Earnings per share, EUR          -0.41   0.03  -0.01  -0.02  -0.10



Condensed balance sheet
                              Sept 30 Sept 30 Dec 31
EUR million                      2008    2007   2007
ASSETS
Non-current assets
Intangible assets                 567     481    475
Property, plant and equipment   2 023   2 006  1 980
Non-current financial assets
  Interest-bearing                427     446    453
  Non interest-bearing             89      79     77
                                3 106   3 013  2 986
Current assets
Inventories                     1 602   1 925  1 630
Current financial assets
  Interest-bearing                109      67     50
  Non interest-bearing          1 037     942    975
Cash and cash equivalents         107      69     86
                                2 855   3 003  2 740

Assets held for sale               27     224    184

Total assets                    5 988   6 240  5 910

EQUITY AND LIABILITIES
Equity
Equity attributable to the
equity holders of the Company   3 132   3 405  3 337
Minority interest                   -       0      -
                                3 132   3 405  3 337
Non-current liabilities
Interest-bearing                1 137   1 140  1 046
Non interest-bearing              348     333    337
                                1 484   1 472  1 382
Current liabilities
Interest-bearing                  622     617    464
Non interest-bearing              742     680    675
                                1 364   1 297  1 139

Liabilities related to
assets held for sale                8      65     52

Total equity and liabilities    5 988   6 240  5 910




Consolidated
statement
of changes in
equity
                    Attributable to the equity
                    holders of the company

                        Share  Unregister-    Share    Other     Fair
                                                                value
                      capital     ed share  premium reserves reserves
EUR million                        capital     fund
Equity on December
31, 2006                  308            0      701       11      144
Cash flow hedges            -            -        -        -        2
Fair value changes
on
available-for-sale
financial assets            -            -        -        -        9
Available-for-sale
financial assets
recognized through
P&L                         -            -        -        -      -99
Net investment
hedges                      -            -        -        -        -
Change in
translation
differences                 -            -        -        -        -
Items recognised
directly in equity          -            -        -        -      -88
Net profit for the
period                      -            -        -        -        -
Total recognised
income and expenses         -            -        -        -      -88
Transfers within
equity                      0           -0        -        4        -
Dividends                   -            -        -        -        -
Share-based
payments                    -            -        -        -        -
Share options
exercised                   0            -        0        -        -
Acquisition of
minority in OSTP            -            -        -        -        -
Equity on September
30, 2007                  308            -      701       15       56

Equity on December
31, 2007                  308            -      701       16       57
Cash flow hedges            -            -        -        -      -15
Fair value changes
on
available-for-sale
financial assets            -            -        -        -       -5
Available-for-sale
financial assets
recognized through
P&L                         -            -        -        -        5
Net investment
hedges                      -            -        -        -        -
Change in
translation
differences                 -            -        -        -       -2
Items recognised
directly in equity          -            -        -        -      -17
Net profit for the
period                      -            -        -        -        -
Total recognised
income and expenses         -            -        -        -      -17
Dividends                   -            -        -        -        -
Share-based
payments                    -            -        -        -        -
Share options
exercised                   0            -        0        -        -
Equity on September
30, 2008                  308            -      702       16       40


                    Attributable to the equity
                    holders of the Company

                     Treasury   Cumulative Retained Minority    Total
                       shares  translation earnings interest   equity
EUR million                    differences
Equity on December
31, 2006                   -2          -35    1 927       17    3 071
Cash flow hedges            -            -        -        -        2
Fair value changes
on
available-for-sale
financial assets            -            -        -        -        9
Available-for-sale
financial assets
recognized through
P&L                         -            -        -        -      -99
Net investment
hedges                      -            2        -        -        2
Change in
translation
differences                 -          -20        -        0      -20
Items recognised
directly in equity          -          -18        -        0     -106
Net profit for the
period                      -            -      654        4      658
Total recognised
income and expenses         -          -18      654        4      552
Tranfers within
equity                      -            -       -4        -        -
Dividends                   -            -     -199        -     -199
Share-based
payments                    -            -        2        -        2
Share options
exercised                   -            -        -        -        0
Acquisition of
minority in OSTP            -            -        -      -21      -21
Equity on September
30, 2007                   -2          -53    2 380        0    3 405

Equity on December
31, 2007                  -27          -82    2 364        -    3 337
Cash flow hedges            -            -        -        -      -15
Fair value changes
on
available-for-sale
financial assets            -            -        -        -       -5
Available-for-sale
financial assets
recognized through
P&L                         -            -        -        -        5
Net investment
hedges                      -            3        -        -        3
Change in
translation
differences                 -          -24        -        -      -26
Items recognised
directly in equity          -          -21        -        -      -38
Net profit for the
period                      -            -       45        -       45
Total recognised
income and expenses         -          -21       45        -        7
Dividends                   -            -     -216        -     -216
Share-based
payments                    -            -        3        -        3
Share options
exercised                   -            -        -        -        0
Equity on September
30, 2008                  -27         -103    2 196        -    3 132




Condensed statement of cash flows
                                            Jan-Sept Jan-Sept Jan-Dec
EUR million                                     2008     2007    2007
Net profit for the period                         45      658     641
Adjustments
  Depreciation and amortization                  152      152     204
  Impairments                                     24        3       1
  Loss on the sale of copper tube business        66        -       -
  Gain on the sale
  of Outotec shares                                -     -142    -142
  Gain on the Talvivaara
  transaction                                      -     -110    -110
  Other adjustments                              154      318     199
Change in working capital                         97     -266     181
Dividends received                                12       13      13
Interests received                                 5        7      10
Interests paid                                   -53      -67     -83
Income taxes paid                                -50     -189    -239
Net cash from
operating activities                             451      377     676
Purchases of assets                             -200     -106    -163
Purchase of SoGePar shares                      -193        -       -
Purchase of other subsidiaries                    -4        -       -
Purchase of Talvivaara shares                      -      -32     -32
Acquisition of the minority in OSTP                -      -22     -22
Proceeds from the sale of copper tube
business                                          49        -       -
Proceeds from the sale
of subsidiaries                                    -        1       1
Proceeds from the sale
of other assets                                    9        9      15
Net cash from other
investing activities                               0        3       4
Net cash from
investing activities                            -340     -146    -197
Cash flow before
financing activities                             112      231     479
Purchase of treasury shares                        -        -     -25
Borrowings of long-term debt                     164      151     151
Repayment of long-term debt                     -198     -301    -388
Change in current debt                           162      -54    -180
Dividends paid                                  -216     -199    -199
Proceeds from the sale of Outotec shares           -      158     158
Proceeds from the sale
of other financial assets                          0        -       6
Other financing cash flow                         -2       -0       1
Net cash from
financing activities                             -89     -246    -477
Net change in cash
and cash equivalents                              22      -15       2

Cash and cash equivalents at
the beginning of the period                       86       85      85
Foreign exchange rate effect                      -1       -1      -1
Net change in cash
and cash equivalents                              22      -15       2
Cash and cash equivalents
at the end of the period                         107       69      86


Key figures
                                            Jan-Sept Jan-Sept Jan-Dec
EUR million                                     2008     2007    2007
Operating profit margin, %                       4.6     10.5     8.5
Return on capital employed, %                    6.6     17.4    13.9
Return on equity, %                              1.8     27.1    20.0
Return on equity from
continuing operations, %                         4.9     26.9    20.6

Capital employed at end of period              4 228    4 421   4 125
Net interest-bearing
debt at end of period                          1 096    1 016     788
Equity-to-assets ratio
at end of period, %                             52.3     54.6    56.5
Debt-to-equity ratio
at end of period, %                             35.0     29.8    23.6

Earnings per share, EUR                         0.25     3.61    3.52
Earnings per share from
continuing operations, EUR                      0.65     3.59    3.63
Earnings per share from
discontinued operations, EUR                   -0.41     0.03   -0.10
Average number of shares
outstanding, in thousands 1)                 180 169  181 078 180 922
Fully diluted earnings
per share, EUR                                  0.25     3.59    3.50
Fully diluted average number
of shares, in thousands 1)                   181 109  182 100 181 920
Equity per share at end
of period, EUR                                 17.38    18.81   18.53
Number of shares outstanding
at end of period,
in thousands 1)                              180 228  181 084 180 103

Capital expenditure,
continuing operations                            415      147     190
Depreciation,
continuing operations                            152      152     204
Average personnel for the
period, continuing operations                  8 529    8 310   8 270

1) The number of own shares repurchased is excluded.



NOTES TO THE INCOME STATEMENT AND BALANCE SHEET

This interim financial report is prepared in accordance with IAS 34
(Interim Financial Reporting). Mainly the same accounting policies
and methods of computation have been followed in the interim
financial statements as in the annual financial statements for 2007.

Inventories are stated at the lower of cost or net realizable value.
Outokumpu changed its calculation method for the cost of inventories
from first-in, first-out (FIFO) method to weighted average method in
2008. Also, Outokumpu adopted amended standard IAS 23 Borrowing Costs
in 2008. These changes have not had any material impact on the
interim financial statements.

Use of estimates

The preparation of the financial statements in accordance with IFRS
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, as well as the disclosure
of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of income and expenses during
the reporting period. Accounting estimates are employed in the
financial statements to determine reported amounts, including the
realizability of certain assets, the useful lives of tangible and
intangible assets, income taxes, provisions, pension obligations,
impairment of goodwill and other items. Although these estimates are
based on management's best knowledge of current events and actions,
actual results may differ from the estimates.

Shares and share capital

The total number of Outokumpu Oyj shares was 181 446 883 and the
share capital amounted to EUR 308.5 million on September 30, 2008.
Outokumpu Oyj held 1 218 603 treasury shares on September 30, 2008.
This corresponded to 0.7% of the share capital and the total voting
rights of the Company on September 30, 2008.

Outokumpu has a stock option program for management (2003 option
program). The stock options have been allocated as part of the
Group's incentive programs to key personnel of Outokumpu. The option
program has three parts 2003A, 2003B and 2003C. On September 30, 2008
a total of 108 498 Outokumpu Oyj shares had been subscribed for on
the basis of 2003A stock option program and a total of 82 830
Outokumpu Oyj shares had been subscribed for on the basis of 2003B
stock option program. An aggregate maximum of 550 804 Outokumpu Oyj
shares can be subscribed for with the remaining 2003A stock options
and 945 990 with the remaining 2003B stock options. In accordance
with the terms and conditions of the option program, the dividend
adjusted share price for a stock option 2003A was EUR 7.25 and for
stock option 2003B EUR 10.31 on September 30, 2008. Trading with
Outokumpu Oyj's stock options 2003C commenced on the Main List of the
Nasdaq OMX Helsinki as of September 1, 2008. On September 30, 2008 a
total of 5 000 Outokumpu Oyj shares had been subscribed for on the
basis of 2003C stock option program. An aggregate maximum of 95 500
Outokumpu Oyj shares can be subscribed for with the remaining 2003C
stock options. In accordance with the terms and conditions of the
option program, the dividend adjusted share price for a stock option
was EUR 10.94 on September 30, 2008. The share subscription period
for the 2003C stock options is September 1, 2008 to March 1, 2011. As
a result of the share subscriptions with the 2003 stock options,
Outokumpu Oyj's share capital may be increased by a maximum of EUR 2
706 900 and the number of shares by a maximum of 1 592 294 shares.
This corresponds to 0.9% of the Company's shares and voting rights.

Outokumpu has also a share-based incentive program for years
2006-2010 as part of the key employee incentive and commitment system
of the Company. If persons covered by the program were to receive the
number of shares in accordance with the maximum reward, currently a
total of 857 960 shares, their shareholding obtained via the program
would amount to 0.5% of the Company's shares and voting rights.

The detailed information of the 2003 option program and of the
share-based incentive program for 2006-2010 can be found in the
annual report 2007.

Acquisitions

SoGePar

In July, Outokumpu acquired all the shares in SoGePar Group for a
preliminary purchase price of EUR 217 million in cash.  The final
purchase price of EUR 224 million was approved on October 22, 2008.
The adjustment of EUR 7 million to the purchase price, as a result of
changes in working capital and net debt, has not yet been booked in
Outokumpu's third quarter figures. Outokumpu also took on debt in the
company during the third quarter with a preliminary amount of EUR 87
million. With these preliminary figures, SoGePar has been
consolidated into Outokumpu's accounts with effect from August 1,
2008.

SoGePar is an Italian distributor of stainless steel. It operates
stainless steel service centers in Castelleone in Italy and in
Rotherham in the UK. SoGePar also has stock operations in Italy, the
UK, Belgium, Finland, France and Ireland, as well as a commercial
office in Germany and a representative office in Turkey.

The purchase price allocation is provisional and is subject to the
finalization of the fair valuation of the acquired assets. The
purchase price has been allocated to the assets, liabilities and
contingent liabilities at their fair value. The purchase price has
been allocated to customer relationships, which are amortized during
their estimated lifetime of four years. The goodwill recognised on
the acquisition is attributable mainly to the skills and market
knowledge of the acquired business's work force and the synergies are
expected to be achieved from integrating the company into the Group's
existing sales and marketing organisation. Also synergy benefits are
expected when utilising Outokumpu's own production facilities to
supply material to the acquired units.

Between August 1 and September 30, 2008, SoGePar sales was EUR 55
million and result for the period was EUR 7 million negative.


Preliminary purchase price allocation 1)

EUR million
Purchase price                                      217
Acquisition related costs                             3
Fair value of acquired assets and
liabilities                                        -160
Goodwill                                             60

Acquired cash and cash equivalents                  -27
Cash impact of the acquisition                      193

Acquired assets, liabilities and contingent liabilities

                                           Sellers book
EUR million                                      values Fair values
Non-current assets
Intangible assets                                     0          47
Property, plant and equipment                        40          40
Non-current financial assets                          0           0
Current assets
Inventories                                         168         168
Current financial assets
Interest-bearing                                      6           6
Non interest-bearing                                156         156
Cash and cash equivalents                            27          27
Non-current liabilities
Interest-bearing                                    -24         -24
Non interest-bearing (sis. defta
liability)                                           -4         -18
Current liabilities
Interest-bearing                                    -96         -96
Non interest-bearing                               -147        -147
Total                                               128         160

1) The final purchase price of EUR 224 million
was agreed on October 22, 2008.
The goodwill on acquisition is expected
to increase to some EUR 67 million.



Avesta Klippcenter

In July, Outokumpu acquired the operations of Avesta Klippcenter AB
in Avesta, Sweden. Avesta Klippcenter's main business is to process
stainless steel material from Outokumpu's mills in Sweden for
remelting in Avesta's melt shop. Through the acquisition Outokumpu's
raw material handling capacity will increase, and it will secure
competitive supply for the Avesta stainless steel melt shop. The
total consideration is some EUR 8 million. The purchase price
allocation is preliminary and is subject to finalization of the fair
valuation of the acquired assets. The preliminary assumption is that
the excess value will be allocated partly to intangible assets and
partly to property, plant and equipment. The company has been
consolidated into Outokumpu's accounts with effect from July 1, 2008.

Between July 1 and September 30, 2008, Avesta Klippcenter sales was
EUR 1 million and result for the period was EUR 0.3 million.

If both the above mentioned acquisitions had occurred on January 1,
2008, management estimates that Outokumpu Group consolidated sales
for the period would have been EUR 4 745 million and consolidated
profit EUR 52 million. This estimate is based on the actual
transactions of the acquired companies with Outokumpu and third
parties.

Non-current assets held for sale and discontinued operations

In April, Outokumpu signed a sale and purchase agreement with Cupori
Group whereby Outokumpu sold its remaining copper tube assets to
Cupori. The transaction was closed on June 3, 2008. Outokumpu
received EUR 56 million as consideration of the sale. A capital loss
of EUR 66 million was booked on the transaction in the second
quarter. Both of these figures are subject to final review when the
closing balance sheet has been approved, which is expected to take
place by the end of the fourth quarter 2008.

The assets sold comprise the copper plumbing installation and
industrial tube manufacturing companies in Pori in Finland, Zaratamo
in Spain, Västerås in Sweden and Liège in Belgium, as well as the
copper tube sales companies in France, Germany and Italy. In 2007,
these businesses generated sales of some EUR 510 million with a net
loss of some EUR 5 million with a number of personnel of some 730.

The remaining part of Copper Tube and Brass business consists of
brass rod business, which produces brass rods for applications in the
construction, electrical and automotive industries. The brass rod
plant is located in Drünen in the Netherlands and the unit also has a
50% stake in a brass rod company in Gusum, Sweden. Outokumpu Brass
employs some 170 employees. The assets and liabilities of brass rod
business are presented as held for sale. Outokumpu intends to divest
also the brass rod business.

Disputes and litigations

In April 2007, Outokumpu was served a Statement of Objection in which
it was alleged that former Outokumpu subsidiary has been
participating in cartel activities at the turn of the century. The
investigations have been concluded and Outokumpu was fully released
from all allegations with respect to this case.


Specification of non-current
assets held for sale
and discontinued operations

Income statement
                                  Jan-Sept Jan-Sept Jan-Dec
EUR million                           2008     2007    2007
Sales                                  254      461     599
Expenses                              -252     -449    -607
Operating profit                         1       13      -8
Net financial items                     -3       -5      -6
Profit before taxes                     -1        7     -15
Taxes                                   -1       -1      -1
Profit after taxes                      -2        6     -15

Impairment loss recognized
on the fair valuation of the
Outokumpu Copper Tube and Brass
division's assets and liabilities       -6       -1      -3
Loss on the sale of copper tube
business                               -66        -       -
Taxes                                    -        -       -
After-tax result from the
disposal and impairment loss           -73        5     -18

Minority interest                        -        -       -
Net profit for the period
from discontinued operations           -73        5     -18

Balance sheet
                                   Sept 30  Sept 30  Dec 31
EUR million                           2008     2007    2007
Assets
Intangible and tangible assets           2        6       6
Other non-current assets                 3        3       4
Inventories                             13      112      91
Other current non
interest-bearing assets                  9      103      83
                                        27      224     184
Liabilities
Provisions                               1        2       4
Other non-current non
interest-bearing liabilities             1        4       5
Trade payables                           5       44      32
Other current non
interest-bearing liabilities             0       15      11
                                         8       65      52

Cash flows
                                  Jan-Sept Jan-Sept Jan-Dec
EUR million                           2008     2007    2007
Operating cash flows                     8       10      18
Investing cash flows                   -14       -2      -3
Financing cash flows                    17       -6     -19
Total cash flows                        -5        2      -4




Major non-recurring items
in operating profit
                                            Jan-Sept Jan-Sept Jan-Dec
EUR million                                     2008     2007    2007
Thin Strip restructuring in Britain              -66      -11     -11
Gain on the sale of
Hitura mine in Finland                             -       25      25
                                                 -66       14      14

Major non-recurring items in
financial income and expenses
                                            Jan-Sept Jan-Sept Jan-Dec
EUR million                                     2008     2007    2007
Impairment of Belvedere shares                   -12        -       -
Gain on the sale
of Outotec shares                                  -      142     142
Gain on the Talvivaara transaction                 -      110     110
                                                 -12      252     252

Income taxes
                                            Jan-Sept Jan-Sept Jan-Dec
EUR million                                     2008     2007    2007
Current taxes                                    -42     -124    -107
Deferred taxes                                    -4      -14     -31
                                                 -47     -138    -138

Property, plant
and equipment
                                              Jan 1,   Jan 1,  Jan 1,
                                              2008 -   2007 -  2007 -
                                            Sept 30, Sept 30, Dec 31,
EUR million                                     2008     2007    2007
Historical cost at the
beginning of the period                        3 984    4 009   4 009
Translation differences                          -53      -35     -76
Additions                                        189       93     137
Acquisition of subsidiaries                       44        -       -
Disposal of subsidiaries                           -      -20     -20
Disposals                                        -92       -3     -67
Reclassifications                                 -2        0       0
Historical cost at
the end of the period                          4 070    4 044   3 984

Accumulated depreciation at
the beginning of the period                   -2 004   -1 939  -1 939
Translation differences                           32       21      47
Disposal of subsidiaries                           -       19      19
Disposals                                         65        3      56
Reclassifications                                  0        0      -0
Depreciation                                    -141     -141    -190
Impairments                                        -        -       3
Accumulated depreciation at
the end of the period                         -2 047   -2 037  -2 004

Carrying value at
the end of the period                          2 023    2 006   1 980
Carrying value at the
beginning of the period                        1 980    2 069   2 069

Commitments
                                             Sept 30  Sept 30  Dec 31
EUR million                                     2008     2007    2007
Mortgages and pledges
Mortgages on land                                121      132     122
Other pledges                                      0        0       0

Guarantees
 On behalf of subsidiaries for commercial
commitments                                       52       84      41
 On behalf of associated companies for
financing                                          5        5       5

Other commitments                                 59       55      64

Minimum future lease
payments on
operating leases                                  57       59      56

Group's major off-balance sheet investment commitments totaled
EUR 228 million on Sept 30, 2008 (Dec 31, 2007: EUR 37 million).
In July 3, 2008 Outokumpu signed a deal with
Vattenfall on electricity deliveries amounting to
around fifteen terawatt hours (TWh) during
a ten-year period in Finland and Sweden.

Related party tranasactions

Transactions and balances
with associated companies
                                             Sept 30  Sept 30  Dec 31
EUR million                                     2008     2007    2007
Sales                                              0        0       0
Purchases                                         -8       -8      -9
Financial income and expenses                      2        2       2

Loans and other receivables                        9        9       9
Trade and other payables                           0        0       0




Fair values and nominal
amounts of
derivative instruments
                      Sept 30  Sept 30 Sept 30 Dec 31 Sept 30  Dec 31
                         2008     2008    2008   2007    2008    2007
                     Positive Negative     Net    Net
                         fair     fair    fair   fair Nominal Nominal
EUR million             value    value   value  value amounts amounts
Currency and
interest
rate derivatives
  Currency forwards        39       32       7      8   2 481   1 992
  Interest rate
swaps                       7        -       7     10     281     282
  Currency swaps            2        -       2      -      49       -

                                                       Number  Number
                                                           of      of
                                                      shares, shares,
                                                      million million
Stock options
  Belvedere
Resources Ltd.              1        -       1      3     3.7     3.7

                                                         Tons    Tons
Metal derivatives
  Forward and
futures
  copper contracts          1        1       0     -2   5 800  11 775
  Forward and
futures
  nickel contracts          6        7      -1      0   5 144   3 114
  Forward and
futures
  zinc contracts            0        0      -0     -0   1 225   1 100
  Forward
  molybdenum
contracts                   -        -       -     -0       -       5
  Nickel options,
sold                       27        -      27      0  12 096      24
  Nickel options,
bought                      -        0      -0      -   7 116       -

Emission allowance
derivatives                 1        -       1      0 180 000  80 000

                                                          TWh     TWh
Electricity
derivatives                20       12       8     16     1.6     2.3
                          104       53      51     35





Segment information

General Stainless

EUR million             I/07 II/07 III/07 IV/07  2007
Sales                  1 700 1 670    879 1 073 5 321
of which Tornio Works  1 206 1 038    516   708 3 468

Operating profit         245   188   -224    11   220
of which Tornio Works    227   143   -195     3   178

Operating capital at
the end of period      3 047 3 007  2 789 2 607 2 607

Average personnel
for the period         3 506 3 794  3 807 3 549 3 682

Deliveries of main
products (1 000 tons)
Cold rolled              187   151     94   155   587
White hot strip           81    82     41    66   270
Semi-finished products   117   118     64    85   383
Total deliveries
of the division          386   350    198   305 1 240

EUR million             I/08 II/08 III/08
Sales                  1 304 1 222    933
of which Tornio Works    905   833    567

Operating profit          81   125    -35
of which Tornio Works     67   114    -22

Operating capital at
the end of period      2 722 2 671  2 820

Average personnel
for the period         3 578 4 000  4 163

Deliveries of main
products (1 000 tons)
Cold rolled              196   162    151
White hot strip          102    85     58
Semi-finished products   100   113     76
Total deliveries
of the division          398   359    285

Specialty Stainless

EUR million             I/07 II/07 III/07 IV/07  2007
Sales                  1 003 1 028    687   738 3 456

Operating profit         182   196    -51     9   337

Operating capital at
the end of period      1 668 1 871  1 657 1 513 1 513

Average personnel
for the period         4 146 4 188  4 185 4 107 4 135

Deliveries of main
products (1 000 tons)
Cold rolled               51    52     33    38   174
White hot strip           43    38     23    31   135
Quarto plate              41    43     30    38   151
Tubular products          20    17     12    15    63
Long products             16    15     11    11    52
Total deliveries
of the division          170   164    109   133   574

EUR million             I/08 II/08 III/08
Sales                    786   778    630

Operating profit          42    44    -63

Operating capital at
the end of period      1 430 1 449  1 378

Average personnel
for the period         4 115 4 096  4 192

Deliveries of main
products (1 000 tons)
Cold rolled               46    44     35
White hot strip           45    40     31
Quarto plate              35    37     28
Tubular products          19    18     14
Long products             14    14     14
Total deliveries
of the division          161   153    121

Other operations

EUR million             I/07 II/07 III/07 IV/07  2007
Sales                     64    63     53    57   237

Operating profit           1    19      8    -6    21

Operating capital at
the end of period       -125   101    184   236   236

Average personnel
for the period           477   459    424   431   453

EUR million             I/08 II/08 III/08
Sales                     64    63     69

Operating profit         -20     4     29

Operating capital at
the end of period        -20   283    266

Average personnel
for the period           447   487    507




Income statement by quarter

EUR million                     I/07 II/07 III/07 IV/07   2007
Continuing operations:
Sales
General Stainless              1 700 1 670    879 1 073  5 321
of which intersegment sales      421   430    230   234  1 315
Specialty Stainless            1 003 1 028    687   738  3 456
of which intersegment sales      169   193    119   124    605
Other operations                  64    63     53    57    237
of which intersegment sales       48    45     43    45    181
Intra-group sales               -638  -669   -391  -403 -2 101
Total sales                    2 129 2 092  1 227 1 465  6 913

Operating profit
General Stainless                245   188   -224    11    220
Specialty Stainless              182   196    -51     9    337
Other operations                   1    19      8    -6     21
Intra-group items                 -4     2     11     2     11
Total operating profit           424   406   -256    15    589

Share of results
in associated companies            2     4     -2    -1      4
Financial income and expenses    -10   242    -19    -7    206
Profit before taxes              416   652   -277     7    798
Income taxes                    -105  -100     67    -0   -138
Net profit for the period
from continuing operations       311   553   -210     7    660

Net profit for the period
from discontinued
operations                        -4    12     -4   -23    -18
Net profit for the period        307   565   -214   -16    641

Attributable to:
Equity holders of the Company    305   563   -214   -16    638
Minority interest                  2     2     -0    -0      4

EUR million                     I/08 II/08 III/08
Continuing operations:
Sales
General Stainless              1 304 1 222    933
of which intersegment sales      284   337    216
Specialty Stainless              786   778    630
of which intersegment sales      124   120     85
Other operations                  64    63     69
of which intersegment sales       57    57     61
Intra-group sales               -465  -514   -362
Total sales                    1 689 1 549  1 270

Operating profit
General Stainless                 81   125    -35
Specialty Stainless               42    44    -63
Other operations                 -20     4     29
Intra-group items                 -3     1      3
Total operating profit           100   174    -66

Share of results
in associated companies            0     1     -2
Financial income and expenses    -20    -8    -14
Profit before taxes               80   166    -82
Income taxes                     -19   -36      9
Net profit for the period
from continuing operations        61   130    -73

Net profit for the period
from discontinued
operations                         2   -74     -1
Net profit for the period         63    56    -74

Attributable to:
Equity holders of the Company     63    56    -74
Minority interest                  -     -      -

Major non-recurring
items in operating profit

EUR million                     I/07 II/07 III/07 IV/07   2007
Specialty Stainless
Thin Strip restructuring
in Britain                         -     -    -11     -    -11
Other operations
Gain on sale of
Hitura mine in Finland             -    25      -     -     25
                                   -    25    -11     -     14

EUR million                     I/08 II/08 III/08
Specialty Stainless
Thin Strip restructuring
in Britain                         -     -    -66
Other operations
Gain on sale of
Hitura mine in Finland             -     -      -
                                   -     -    -66

Major non-recurring items in
financial income and expenses

EUR million                     I/07 II/07 III/07 IV/07   2007
Impairment of Belvedere shares     -     -      -     -      -
Gain on the sale of
Outotec shares                     -   142      -     -    142
Gain on the Talvivaara
transaction                        -   110      -     -    110
                                   -   252      -     -    252

EUR million                     I/08 II/08 III/08
Impairment of Belvedere shares   -12     -      -
Gain on the sale of
Outotec shares                     -     -      -
Gain on the Talvivaara
transaction                        -     -      -
                                 -12     -      -




Key figures by quarter

EUR million                             I/07   II/07  III/07   IV/07
Operating profit margin, %              19.9    19.4   -20.9     1.0
Return on capital employed, %           38.8    35.5   -22.3     1.4
Return on equity, %                     39.3    66.2   -24.3    -2.0
Return on equity,
continuing operations, %                39.8    64.8   -23.9     0.8

Capital employed at end of period      4 377   4 753   4 421   4 125
Net interest-bearing
debt at end of period                  1 189   1 119   1 016     788
Equity-to-assets ratio
at end of period, %                     47.2    50.9    54.6    56.5
Debt-to-equity ratio
at end of period, %                     37.3    30.8    29.8    23.6

Earnings per share, EUR                 1.69    3.11   -1.19   -0.09
Earnings per share from
continuing operations, EUR              1.71    3.04   -1.17    0.04
Earnings per share from
discontinued operations, EUR           -0.02    0.07   -0.02   -0.13
Average number of shares
outstanding, in thousands 1)         181 067 181 082 181 084 180 680
Equity per share
at end of period, EUR                  17.51   20.07   18.81   18.53
Number of shares outstanding
at end of period, in thousands 1)    181 082 181 082 181 084 180 103

Capital expenditure,
continuing operations                     25      75      47      43
Depreciation, continuing operations       51      50      51      52
Average personnel for the period,
continuing operations                  8 129   8 441   8 416   8 086

EUR million                             I/08   II/08  III/08
Operating profit margin, %               5.9    11.2    -5.2
Return on capital employed, %           10.0    17.2    -6.3
Return on equity, %                      7.7     7.0    -9.3
Return on equity,
continuing operations, %                 7.5    16.3    -9.2

Capital employed at end of period      3 899   4 166   4 228
Net interest-bearing
debt at end of period                    737     939   1 096
Equity-to-assets ratio
at end of period, %                     53.2    54.8    52.3
Debt-to-equity ratio
at end of period, %                     23.3    29.1    35.0

Earnings per share, EUR                 0.35    0.31   -0.41
Earnings per share from
continuing operations, EUR              0.34    0.72   -0.41
Earnings per share from
discontinued operations, EUR            0.01   -0.41   -0.01
Average number of shares
outstanding, in thousands 1)         180 112 180 172 180 223
Equity per share
at end of period, EUR                  17.56   17.91   17.38
Number of shares outstanding
at end of period, in thousands 1)    180 127 180 222 180 228

Capital expenditure,
continuing operations                     41      56     317
Depreciation, continuing operations       50      50      52
Average personnel for the period,
continuing operations                  8 140   8 583   8 862

1) The number of own shares repurchased is excluded.





Definitions of key
figures


                         Total equity + net interest-bearing
Capital employed       = debt

Operating capital      = Capital employed + net tax liability

Return on equity       = Net profit for the financial year      × 100
                         Total equity (average for the period)

Return on capital      = Operating profit                       × 100
employed (ROCE)          Capital employed (average for the period)


Net interest-            Total interest-bearing debt
bearing debt           = - total interest-bearing assets

Equity-to-assets ratio = Total equity                           × 100
                         Total assets - advances received

Debt-to-equity ratio   = Net interest-bearing debt              × 100
                         Total equity

                         Net profit for the financial year
Earnings per share     = attributable to the equity holders
                         Adjusted average number
                         of shares during the period

                         Equity attributable to
Equity per share       = the equity holders
                         Adjusted number of shares
                         at the end of the period


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.