July 31 (Reuters) - Finnish stainless steel maker Outokumpu (OUT1V.HE) , opens new tab on Thursday reported a core profit above market expectations for the second quarter and said it had increased its short-term cost saving target to 60 million euros ($68.6 million) by the end of 2025.

Its adjusted profit before interest, taxes, depreciation and amortisation was 75 million euros in the April-June quarter, while analysts had expected 69 million in a consensus provided by Outokumpu.

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"During the second quarter, we continued to benefit from our strong market positions in both Europe and the U.S.," CEO Kati ter Horst said in an earnings statement.

She said, however, that the quarter was marked by uncertainty and heightened geopolitical tensions, leading to increased caution among customers.

European steelmakers, already struggling with weak demand, high costs and competition from cheaper Chinese imports, face an additional challenge this year from President Donald Trump's tariffs on U.S. imports.

Aside from raising costs when exporting from Europe, Trump's tariffs on steel and aluminium, first rolled out at 25% in March and raised to 50% in June, are diverting shipments meant for the U.S. market, risking an increase in cheap imports into Europe.

"Asian imports to Europe remain high compared to the low demand in the stainless steel market," Outokumpu said.

The company's stainless steel deliveries rose slightly to 483,000 tonnes in the second quarter, but are expected to decline by 5-15% in the third due to seasonality effects and market weakness, it said.

($1 = 0.8744 euros)

https://www.reuters.com/markets/europe/finlands-outokumpu-beats-earnings-estimates-challenging-environment-2025-07-31/