Steel Mills
SSAB Americas Improve Results in Q2
Written by Sandy Williams
July 23, 2016
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.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]