SSAB's revenue for the fourth quarter amounted to SEK 23.6 billion ( about EUR 2.06 billion). This was below the revenue of SEK 26.5 billion ( about EUR 2.31 billion) in the same period last year. The company's operating profit also decreased to SEK 487 million ( about EUR 42.54 million). In the same quarter of 2023, the figure was SEK 2.4 billion ( about EUR 0.21 billion). Despite this, SSAB's net cash position remained strong at SEK 17.8 billion ( about EUR 1.55 billion).
Johnny Sjöström, CEO of the company, pointed to the continued weakness in the European and North American markets in particular, noting that steel prices have declined significantly in the US, while lower demand in Europe has negatively impacted the SSAB Special Steels and SSAB Europe divisions. In contrast, SSAB Special Steels was maintaining price stability better thanks to its high value-added products.
SSAB Special Steels reported an operating profit of SEK 629 million ( about EUR 54.94 million) during the fourth quarter, with an operating margin of 10%. The company's US operations, SSAB Americas, was the segment most affected by price declines. After posting a profit of SEK 1.68 billion ( about EUR 0.15 billion) in the same period in 2023, SSAB Americas posted a profit of only SEK 189 million (about EUR 16.51 million) in the fourth quarter of 2024, reducing its operating margin from 25% to 4%. SSAB Europe, on the other hand, continued its operations with an operating profit of SEK 109 million ( about EUR 9.52 million) and an operating margin of 1%.
Company continues its transformation projects to reduce carbon emissions in steel production. The projects, which are progressing at the Luleå and Oxelösund plants in Sweden, aim to reduce costs, improve the product portfolio and significantly reduce carbon emissions. Changes in production processes will shorten delivery times, respond faster to demand fluctuations and create a flexible raw material supply chain.
Company announced that it will invest a total of EUR 4.5 billion in the transformation project in Luleå. This investment is expected to increase annual EBITDA by more than SEK 5 billion ( about EUR 436 billion) and save maintenance capital expenditure of about EUR 2 billion.
Under the company's financial strategies, a dividend of SEK 2.60 ( about EUR 0.23) per share has been proposed for 2024. The previous year's dividend of SEK 5.00 ( about EUR 436.74) has been revised in line with global market conditions.
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