SSAB Foresees Weak Growth in Europe, a Slow Recovery in the U.S., and Continued Solid Demand in Latin America
05/01/2013 - SSAB said the first quarter of the year was characterized by a degree of restocking by customers, which had a positive impact on the company's volumes within all business areas.
First Quarter Results:
- Sales of SEK 8,833 (11,023) million
- Operating profit/loss of SEK -136 (479) million
- Profit/loss after financial items of SEK -278 (329) million
- Earnings per share of SEK -0.42 (0.87)
- Operating cash flow of SEK 85 (1,887) million and cash flow from current operations of SEK -111 (1,684) million
Comments from CEO Martin Lindqvist:
“Eeconomic activity in North America and Asia strengthened somewhat while, as expected, the trend in Europe was very weak. The first quarter was characterized by a degree of restocking by customers, which had a positive impact on SSAB's volumes within all business areas. Prices of SSAB’s products were marginally lower during the quarter. Variable as well as fixed costs were lower during the quarter. In North America, margins were negatively affected by the fact that scrap metal prices remained at a relatively high level.
“During the quarter, we completed all parts of the previously announced efficiency program. This will gradually have an impact during the year, reaching full effect in 2014. At the same time, a majority of the employees in the Swedish operations have continued with reduced work hours and pay. One of the blast furnaces in Oxelösund was idle also during the first quarter and production otherwise has been adapted to demand. Cash flow continued to be positive and work is continuing on increasing working capital efficiency.
“The second quarter will be characterized by continued weak growth in Europe, although we do perceive a degree of recovery on the Nordic markets, a slow recovery in the U.S and a continued solid demand in Latin America. The scheduled maintenance outage at our operations in Montpelier, Iowa will reduce earnings by approximately SEK 150 million. Our total volumes in the second quarter are expected to be somewhat higher than in the first quarter.”
SSAB is a global leader in value added, high strength steel. SSAB offers products developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 45 countries and operates production facilities in Sweden and the U.S.
