Swedish specialty steel producer SSAB has posted its financial results for the second quarter and the first half of the current year, reporting a net loss of SEK 144 million ($22 million) for the second quarter, compared to a net profit of SEK 480 million in the corresponding quarter of 2012. The company's sales amounted to SEK 8.9 billion ($1.35 billion), down 18 percent year on year, due to lower prices, lower volumes, a weaker product mix and currency effects.
In the first half of the year, the company saw a net loss of SEK 281 million ($42.86 million), compared to a net profit of SEK 761 million in the first half of 2012. SSAB's sales in the first half decreased by 18.8 percent year on year to SEK 17.7 billion ($2.7 billion).
During the second quarter, SSAB's crude steel output decreased by six percent, while finished steel production fell six percent, both year on year. Its shipments in the given period fell by two percent to 1.08 million mt compared to the corresponding quarter of the previous year.
According to SSAB, it appears that the weak trend in southern Europe will continue during the third quarter, while demand in northern and eastern Europe appears to be more stable. During the latter part of the second half of the year, the improved economic climate in the US is expected to impact demand for steel, and it appears that demand in Latin America will remain stable. In Asia, demand in China is expected to stabilize during the second half of the year, while growth in the mining industry, particularly in Australia, is expected to be weak during the remainder of the year.