SSAB regulates production in Europe
SSAB plans to reduce production in Europe in the second half of the year after a weak performance in the second quarter, while its North American division was completed on time.
In its B2 report, the Swedish group highlights that it has raised its figures for the first quarter. However, compared to the corresponding quarter of 2024, profits decreased, while shipments in some areas increased. Car sales in Europe, however, showed good results.
With revenue of SEK 25,631 million ($2.69 billion) in the reporting quarter – compared to SEK 28,282 million in the second quarter of 2024 – SSAB's operating result was SEK 2,140 million, compared to SEK 2,969 million.
SSAB's operating result was a decrease compared to last year, mainly due to lower prices for standard steel. Compared to the first quarter of this year, the result improved, primarily due to higher prices at SSAB Americas.
The market in Europe continues to decline, and as a result, SSAB Europe will adjust production volumes and headcount during the third quarter, which is also typically slow due to seasonal fluctuations. During a conference call on Wednesday overseen by Callanish, the company's chief executive, Johnny Shestrem, noted that not a single blast furnace would be decommissioned and that the reduction would be mainly related to necessary maintenance.
If we look at the three main divisions of the company, SSAB Special Steels continues to maintain higher price stability compared to standard products throughout the business cycle. The division's operating result was SEK 1,480 million, compared to SEK 1,659 million in the second quarter of 2024, with a tonnage of 325,000 tons, compared to 337,000 tons.
SSAB Americas' operating result was SEK 807 million compared to SEK 1,204 million a year earlier, with an increase in tonnage of 487,000 tons against 439,000 tons.
However, SSAB Europe increased production volumes to 895,000 tons, compared with 870,000 tons in the second quarter of 2024, driven by record high shipments of high-strength steel for the automotive industry. Thus, SSAB expanded its business in contrast to the general trend of reducing the automotive business of European steel manufacturers, said Shestrem.
Christian Kel Germany
Kallanish.com