In This Article:
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Revenue: SEK 24.4 billion in Q3, a 14% decrease from Q2 and a 17% decrease year-over-year.
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EBITA: SEK 2.3 billion in Q3, a reduction of SEK 1.7 billion from the previous quarter and SEK 3 billion year-over-year.
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Steel Shipments: 1,457 kilotonnes in Q3, 11% lower than Q2 and 3% lower year-over-year.
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Maintenance Costs: SEK 950 million in Q3, with significant maintenance in Montpelier and other locations.
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Net Position: SEK 13.3 billion at the end of Q3.
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Cash Flow: Positive before dividend, with a dividend payout of SEK 5 billion and share buyback impact of SEK 1.2 billion.
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CapEx Plan: SEK 6.3 billion for the year, with SEK 3.5 billion spent year-to-date.
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Raw Material Costs: Expected to be somewhat lower for special steels in Q4, stable for Europe, and somewhat higher for Americas.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SSAB AB (SSAAF) is progressing well with its transformation plan, including the construction of new electric arc furnaces and the closure of older facilities, aiming for a more flexible and cost-effective production setup.
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The company is focusing on increasing its capacity for high-strength and premium steels, which have shown more stable prices and earnings compared to standardized steel products.
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SSAB AB (SSAAF) is committed to eliminating CO2 emissions from its operations, aligning with growing demand for environmentally friendly steel products.
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The company has maintained good pricing management in challenging market conditions, particularly in its special steels division, which has shown stable demand and profitability.
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SSAB AB (SSAAF) has received a grant of over EUR 100 million to support its decarbonization efforts, indicating strong external support for its sustainability initiatives.
Negative Points
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The European market remains weak, with a seasonal slowdown and lower apparent demand impacting SSAB AB (SSAAF)'s performance.
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The company faced significant maintenance costs in Q3, totaling SEK 950 million, which affected its financial results.
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SSAB AB (SSAAF) anticipates somewhat lower shipments in Europe and special steels in Q4, with lower prices expected in Europe and the Americas.
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The construction market continues to be weak, affecting the Ruukki Construction division, despite efforts to focus on the renovation segment.
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The company's financial performance was impacted by lower volumes and prices compared to the previous year, with a 17% reduction in revenue year-on-year.