Swedish specialty steel producer SSAB has posted its financial results for the third quarter and the first nine months of this year.
In the given quarter, the company reported a net profit of SEK 1.05 billion ($98.53 million), compared to a net profit of SEK 3.51 billion in the corresponding period of last year and a net profit of SEK 2.42 billion in the second quarter, while its sales revenues amounted to SEK 24.37 billion ($2.29 billion), decreasing by 13.8 percent quarter on quarter and down by 16.9 percent year on year, mainly due to lower prices and shipments. In addition, SSAB’s operating profit for the third quarter amounted to SEK 1.25 billion ($117.27 million), compared to an operating profit of SEK 2.97 billion recorded in the second quarter this year, due to weaker demand and planned maintenance outages, and an operating profit of SEK 4.37 billion in the third quarter of 2023 amid lower margins in the North American plate market.
In the January-September period this year, the company’s net profit came to SEK 6.04 billion ($566.53 million), compared to a net profit of SEK 11.14 billion in the same period of last year, while its sales revenues totaled SEK 79.80 billion ($7.45 billion), moving down by 14.2 percent year on year. Also, SSAB’s operating profit in the first nine months dropped to SEK 7.37 billion ($691.38 million) from an operating profit of SEK 14.07 billion in the same period of 2023.
The company stated that, in the third quarter, demand for high-strength steel in Europe was weak, due among other things to seasonality, whereas demand in emerging markets was more stable. Demand for standard steel in Europe was weak during the quarter and the market was still cautious after the holiday season. Moreover, market prices for strip in Europe weakened further during the quarter, while heavy plate prices decreased somewhat. Also, distributors have continued to adopt a cautious approach. Inventory levels in the market are estimated to be normal or somewhat low, although import volumes were at a high level during the quarter, relative to a very subdued overall European steel market.