Regulatory press releases
Interim report Q3 2023: Weak market in Europe, strong cash flow
October 25, 2023 7:30 CEST 6 min read
The third quarter · Revenue was SEK 29,339 (31,516) million · Operating result was SEK 4,371 (6,594) million · Earnings per share were SEK 3.40 (4.93) · Net cash was SEK 16.8 (8.7) billion · Investments in the transformation to fossil-free steel continue
Comments by the CEO
SSAB's operating result for the third quarter of 2023 amounted to SEK 4,371 (6,594) million. The decrease, compared to the high level last year, was mostly due to weaker markets for SSAB Europe, Tibnor and Ruukki Construction. Compared with the second quarter of 2023, the Group's operating result decreased by SEK 592 million. SSAB continues to generate strong cash flows, the operational cash flow amounted to SEK 6.3 billion in the third quarter.
SSAB Special Steels had an operating result* of SEK 1,808 (2,390) million and an operating margin of 23% (28%). SSAB Special Steels has a strong position on the market for high-strength steels, with products that add significant customer value in the form of higher productivity and sustainability performance. This provides conditions for more stable prices over the business cycle.
SSAB Americas' operating result was SEK 2,653 (3,034) million and the operating margin was 35% (37%). SSAB Europe* had an operating result of SEK 254 (1,446) million and an operating margin of 2% (12%).
Safety performance continued to improve and Lost Time Injury Frequency (LTIF) decreased to 0.94 (1.15) in the third quarter.
Demand in Europe is weak and the seasonal slowdown during the third quarter was more pronounced than normal. Measures have been introduced to adjust production, cost and staffing. The target is to cut costs by SEK 500 million, around SEK 200 million of which are structural, on an annual basis. These measures include temporary and permanent layoffs, use of working hours banks, a restrictive approach to recruitment and other fixed costs. Also in SSAB Special Steels' markets, customers have adopted a more cautious approach, especially in Europe. The heavy plate market in North America was more stable during the quarter.
The transformation to remove carbon dioxide emissions, lower costs and strengthen the product portfolio continues. SSAB can contribute to the sustainable development of society and dramatically reduce the carbon footprint in the industrial value chain. The transformation requires several permits. In October, the Land and Environment Court approved the decision previously taken by The Swedish Energy Markets Inspectorate of two new 130 kV cables to SSAB in Oxelösund. The decision can be appealed to the Land and Environment Court of Appeal. Sales of SSAB Zero, a steel with zero scope 1 and 2 emissions, continue to develop according to plan with strong interest from many segments and customers.
*) Adjusted operating result is applied for comparative information, no items affecting comparability were reported in the third quarter of 2023.
SSAB invites you to a presentation of the Q3 report of 2023 at 9.30am CEST on Wednesday, October 25, 2023.
The report will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Leena Craelius.
The press conference will be held in English and live webcast on SSAB’s website www.ssab.com.
Link to webcast: https://edge.media-server.com/mmc/p/vp3ssyjn
You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can chose if you want to dial in or click “Call Me” for a call-back.
Link to teleconference: https://register.vevent.com/register/BI90574e8ab7fd4ff091f2bdd11050b486
For further information, please contact:
Per Hillström, Head of Investor Relations, [email protected], phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
[email protected], phone: +46 72 233 5288
This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CEST on October 25, 2023.
SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. www.ssab.com.
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