Steel Mills
SSAB Group Q1 Results Exceed Expectations
Written by David Schollaert
April 26, 2022
Swedish steelmaker SSAB posted a strong start to 2022 with better-than-expected first-quarter results. The solid performance across all divisions was thanks to high steel prices, offsetting disruptions in Raahe, Finland, and Americas’ operations, the company said.
SSAB Americas’ revenue was $7.465 billion Swedish krona ($767 million USD) in the first quarter of 2022, more than doubling the same year-ago quarter. The improved performance was thanks to higher steel prices despite a slight decrease in shipments over the period, according to financial results posted Tuesday, April 26.
Compared with the fourth quarter of 2021, earnings were up 21.3% or $1.312 billion SEK ($134.8 million USD), also driven by higher prices. Lower shipments – 438,000 tons, down 42,000 tons or 9% – versus the same year-ago period were due to planned maintenance outages and a shortage of transport capacity.
The steelmaker said the war has driven up both raw material and steel prices. Order intake rose temporarily during the first quarter due to restocking and efforts to source steel ahead of potential supply constraints. Demand for steel during the second quarter of 2022 is expected to normalize, the company added
Prices for heavy plate in the US rose during the first quarter, driven by solid customer demand, while inventory levels at distributors were low, the company said.
In all, SSAB Group saw net earnings of $6.016 billion SEK ($618.1 million USD) for the first quarter of 2022, nearly three times more than the same year-ago period, and 10.2% higher sequentially.
Revenue during the January through March period totaled $31.575 billion SEK (3.244 billion USD), up nearly 61% from $11.915 billion SEK ($1.224 billion USD) YoY, and 15.5% higher sequentially.
The results are thanks in part to fourth-quarter earnings of $5.458 billion SEK ($58 million USD) on revenue of $27.337 billion SEK ($2.89 billion USD) versus $16.988 billion SEK ($1.8 billion USD) during the same year-ago quarter.
“SSAB directly ceased sales to Russia and Belarus and discontinued new purchases of ore and coal from Russia until further notice,” SSAB President and CEO Martin Lindqvist said. “Several measures have been introduced to ensure access to raw materials, but there is a risk of disruptions related to sanctions and other fallout from the war in Ukraine.”
SSAB Americas’ shipments are expected to be higher during Q2 2022 compared to the prior quarter, while prices are expected to be somewhat higher, company executives said.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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