Steel Mills

SSAB Americas Improve Results in Q2

Written by Sandy Williams

SSAB Americas results in improve in second quarter due to higher volumes and prices. Sales were SEK 2.8 billion ($323 million) compared to SEK 2.4 billion ($277 million) in first quarter. Shipments improved 11 percent to 526,000 tonnes from 475,000 tonnes in Q1.

The company reports good demand from steel service centers and the wind tower segment during the quarter.

SSAB expects demand for heavy plate in North America to be somewhat lower due to normal seasonal slowdown in third quarter. A planned maintenance outage at SSAB America’s Montpelier facility has been moved from the beginning of fourth quarter to the end of third quarter to take advantage of a seasonal weakness.

In its outlook for key customer segments, SSAB expects railcar production in the US to continue a steady decline along with a slowing in the truck industry. Automotive production is expected to remain high. Construction machinery and oil related segments are expected to remain slow. Mining equipment may have a slight pick-up due to replacement investments. Demand for wind energy products is expected to remain high.

Service center inventories in the U.S. are perceived as normal while firms remain in a wait-and-see mode.

Consolidated results for SSAB were SEK 14.4 billion ($1.6 billion). EBITDA was SEK 1.6 billion ($185 million), up from SEK 1.2 billion in Q2 2015 and SEK 744 million in first quarter 2016.

SSAB attributed improved results to higher shipments and prices, positive synergy, and better capacity utilization.

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