SSAB has announced financial results for second quarter and first half of fiscal 2011.
The first quarter highlights are
Sales increased by 8% and amounted to SEK 11,769 million
Operating profit improved to SEK 1,323 million
Currency affects earnings by SEK +100 million
Profit after financial items improved to SEK 1,179 million
Currency affects earnings by SEK +120 million
Earnings per share of SEK 2.73
Operating cash flow of SEK 590 (341) million
Cash flow from current operations of SEK 445 million
Shipments of niche products increased by 17% YoY
The first half highlights are
Sales increased by 15% and amounted to SEK 22,825 million
Operating profit improved to SEK 1,939 million
Currency affects earnings by SEK -200 million
Profit after financial items improved to SEK 1,683 million
Currency affects earnings by SEK -180 million
Earnings per share of SEK 3.94
Operating cash flow of SEK 827 million
Cash flow from current operations of SEK 356 million
Net debt equity ratio of 65%
Niche products now account for 37% of steel shipments
Mr Martin Lindqvist president & CEO of SSAB said that "Demand was good at the beginning of the second quarter, but we also witnessed a degree of slowdown towards the end of the quarter. Operating profit for the quarter amounted to SEK 1,323 million, which is double that of the preceding quarter and the corresponding quarter last year. The trend in our American operations continued to be positive. In accordance with the objectives that we established in conjunction with the acquisition of the operations in the US, one of our most important niche steels Hardox is now being produced and delivered from our plant in Mobile in Alabama."
He added that "Also, operations in Asia continued to grow strongly, while the market in Europe was characterized by the uncertainty resulting from the financial crises in several countries. Towards the end of the second quarter there was a downward pressure on strip product prices, while plate prices were more stable. Late June, we signed a price agreement for iron ore pellets for the second and third quarters. The new agreement entails a price increase in USD of almost 20% compared with the price in the first quarter 2011. The impact of the price changes will be felt during the third quarter."
