Swedish specialty steelmaker SSAB posted a better-than-expected Q2 operating profit and said the recovery is continuing.
In Q2 this year, the operating profit of the company, which bought North American steel maker IPSCO in 2007, grew to $207 million from $113 million in the same period 2010, against an expected profit of $175 million forecast in a Reuters poll. SSAB's performance was boosted by good demand at the beginning of the second quarter, a trend that slowed down towards the end of the quarter.
Several planned maintenance stops, continued price pressure, together with higher raw materials costs and uncertainty about Europe indicate that the third quarter will be weaker than the second, the company said. "However, the recovery is continuing and demand is expected to be stronger than in 2010," said the Chief Executive Martin Lindqvist.