Steel company SSAB’s operating profit was a loss of SEK 251 million.
The steel company SSAB sank to a loss in the second quarter, but the result was better than market expectations.
– The economic downturn caused by the Covid-19 pandemic had a negative impact on the steel market, says the CEO Martin Lindqvist Review.
– We acted quickly to adapt the organization to weakened demand, and the measures reduced fixed costs by nearly SEK 800 million from the same period last year.
Cost-saving measures, including reduced working hours and temporary layoffs, will also continue in July-September.
The operating result in April – June was a loss of SEK 251 million, compared with a profit of SEK 1,316 million a year earlier.
In a forecast collected by the Swedish forecasting service Infront Data, analysts forecast SSAB’s operating loss of SEK 389 million in April – June.
Earnings per share decreased from SEK 0.98 to SEK -0.28. Analysts forecast earnings per share of SEK -0.37.
Net sales decreased from SEK 20,654 million to SEK 15,155 million. Analysts expected revenue of SEK 14.1 billion.
Due to the weak market situation, the company’s planned maintenance outages have been brought forward and will already be implemented in July and August and not after September.
“The outlook is uncertain, but there are some positive signals in several of our customer segments that indicate that demand may improve in the latter part of the third quarter,” says Lindqvist.