Ipsco Parent Reports Results for 2007
02/08/2008 - Reporting profit after financial items of SEK 1,923 (1,585) million for the fourth quarter on sales of SEK 16,086 (8,316) million, Ipsco parent SSAB said that Ipsco began to make a positive contribution to the Group’s results in the fourth quarter.
SSAB reported profit after financial items of SEK 1,923 (1,585) million for the fourth quarter on sales of SEK 16,086 (8,316) million. Excluding non-recurring items, profit was SEK 2,124 (1,498) million.
For the full year of 2007, the company’s profit after financial items amounted to SEK 6,399 (5,949) million. Excluding non-recurring items profit was SEK 7,833 (5,785) million, an increase of 35%. Sales increased by 53% to SEK 47,651 (31,054) million.
Operating profit was SEK 8,061 (5,951) million. Excluding non-recurring items of SEK -922 (164) million, operating profit was SEK 8,983 (5,787) million. The profit after tax was SEK 4,685 (4,341) million, for earnings per share of SEK 15.45 (14.66).
Commenting on SSAB’s performance, President and CEO Olof Faxander noted that SSAB's earnings for the full year of 2007 were the highest in the company's history.
He said that the acquisition of Ipsco had gone well “both financially and operationally, and in line with the objectives reported at the time of the acquisition.” However, he noted the “acquisition of Ipsco has negatively affected the result with SEK -829 million, due to significant non-recurring items. During the fourth quarter, Ipsco made a positive contribution to the result of the Group and the non-recurring items that have affected the Group are now behind us.
“By the end of the year, we have now almost refinanced all the loans that were taken up in connection with the acquisition. This has resulted in lower interest expenses and longer terms until maturity.
Faxander said that Ipsco is now integrated into the business, and “the work on achieving the synergies we foresaw is proceeding according to plan.” He said that extensive technical cooperation has been established and, on the marketing side, active work is taking place on harmonizing sales. He also said the acquisition “creates conditions for continued strong development of our niche products.”
“The steel market has been strong during the year, and this is particularly the case as regards demand for our niche products,” continued Faxander. “The trend in our important customer segments, such as mining, energy and the transport sectors has been extremely good. For us, growth depends not only on a generally strong steel market but also on the customers' willingness to move from standard products to more advanced steels within our niches.
“I remain optimistic regarding the steel market in 2008 in general and as regards our niche products in particular,” concluded Faxander. “Increased environmental demands as well as demands for reduced energy consumption, particularly within the transport sector, will drive demand for our high-strength steels, since these contribute to reduced emissions and lower energy consumption.
“By the end of the year, we have now almost refinanced all the loans that were taken up in connection with the acquisition. This has resulted in lower interest expenses and longer terms until maturity.
Faxander said that Ipsco is now integrated into the business, and “the work on achieving the synergies we foresaw is proceeding according to plan.” He said that extensive technical cooperation has been established and, on the marketing side, active work is taking place on harmonizing sales. He also said the acquisition “creates conditions for continued strong development of our niche products.”
“The steel market has been strong during the year, and this is particularly the case as regards demand for our niche products,” continued Faxander. “The trend in our important customer segments, such as mining, energy and the transport sectors has been extremely good. For us, growth depends not only on a generally strong steel market but also on the customers' willingness to move from standard products to more advanced steels within our niches.
“I remain optimistic regarding the steel market in 2008 in general and as regards our niche products in particular,” concluded Faxander. “Increased environmental demands as well as demands for reduced energy consumption, particularly within the transport sector, will drive demand for our high-strength steels, since these contribute to reduced emissions and lower energy consumption.
President and CEO Olof Faxander did not comment on the possible sale of Ipsco’s pipe-making business during the press conference that followed release of the company’s earnings statements.
SSAB, a global niche producer of high strength and ultra high strength steel with a leading market position and productivity, develops solutions in order to increase the competitiveness of its customers.
SSAB, a global niche producer of high strength and ultra high strength steel with a leading market position and productivity, develops solutions in order to increase the competitiveness of its customers.
