Swedish specialty steel producer SSAB has posted its financial results for the third quarter of this year, reporting a net loss of SEK 285 million ($34.2 million), compared to a net profit of €41 million in the same quarter of the previous year. The company's sales decreased by 9.6 percent year on year to SEK 13.6 billion ($1.6 billion) in the given quarter.
During the third quarter, SSAB's crude steel output increased by 23 percent, while finished steel production was up 36 percent, both year on year. Its shipments in the given period increased by three percent to 1.54 million mt compared to the corresponding quarter of the previous year.
According to SSAB, during 2016 the underlying demand for steel is expected to pick up somewhat in both Europe and North America. Nevertheless, profitability in the industry as a whole remains low and negative effects of increased exports and low prices as a result of overcapacity in Asia make it difficult to achieve a satisfactory return. Although SSAB considers free trade to be important with regard to development of the global steel industry, the current situation of unhealthy competition means measures are called for to preserve the steel industry in Europe and North America.
SSAB stated that it will is to initiate employer-employee negotiations regarding a potential reduction in the workforce at SSAB Europe division’s production site in Raahe and in the Ruukki Construction division, due to reasons related to production, financial situation and operational restructuring. The negotiations will affect around 2,900 employees in Finland.