SSAB triples operating profits in 2017
Sweden’s SSAB says that improved earnings in 2017 were primarily driven by higher prices and continued growth for high strength steels in its European automotive segment. The steelmaker saw operating profit triple year-on-year for the full year as sales value also improved, SSAB says in a statement sent to Kallanish.
In its outlook for the first quarter of 2018, the company says that In North America, demand for heavy plate is anticipated to be good (see related article). In Europe, demand for strip and heavy plate is similarly anticipated to be good during Q1. Demand for high-strength steels is expected to continue to show positive development and shipments by SSAB Europe and SSAB Americas are expected to be somewhat higher than during the fourth quarter of 2017.
In his comments on the results ceo Martin Lindqvist says that he remains optimistic for the coming year. “Overall, I have a positive view of 2018. SSAB has strong market positions on our home markets and in our global niches. We have strengthened our balance sheet considerably and have good opportunities to continue to deliver good cash flow. SSAB has thus built a strong platform to continue to drive initiatives for profitable growth,” the ceo says.
The steelmaker outlined progress its development plans for the period up to 2020 in its results presentation. The multi-pronged strategy targets 5 specific areas (see related article).
Crude steel production for the year was flat at 7.995 million tonnes versus 7.988mt in 2016. Rolling production increased by 3.4% to 7.397mt against 7.156mt on the same comparison. SSAB’s shipments during the full year 2017 were 6.908mt, up 3.8% compared with full year 2016.
Annual sales improved by 19.3% y-o-y to SEK 66,069 million ($8,382m). Operating profit more than tripled to SEK 3,838m in 2017 from SEK 1,213m the year before.
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Anonymous
Very good overview of the weekly steel market.
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