SSAB posts net profit for Q1, expects strong demand in Q2

Tuesday, 27 April 2021 15:04:36 (GMT+3)   |   Istanbul

Swedish specialty steel producer SSAB has posted its financial results for the first quarter of the current year, reporting a net profit of SEK 1.51 billion ($179.53 million) in the first quarter, compared to a net profit of SEK 178 million in the corresponding period of 2020 and a net profit of SEK 346 million in the fourth quarter of last year. The company's sales revenues amounted to SEK 19.66 billion ($2.3 billion) in the first quarter, increasing by 15.7 percent quarter on quarter and up by 4.7 percent year on year. In the same period, the company reported an operating profit of SEK 1.99 billion ($236.5 million) compared to an operating profit of SEK 343 million recorded in the first quarter of 2020 and an operating profit of SEK 557 million in the fourth quarter last year. SSAB stated that demand is strong, prices are increasing and that they have taken strategic steps in their transition to a fossil-free steel production with their partners LKAB and Vattenfall. The recovery that started during autumn last year has strengthened during the first quarter of this year, according to SSAB president and CEO Martin Lindqvist.

Meanwhile, in the first quarter of this year, SSAB's crude steel output increased by 1.1 percent to 2.1 million mt, while its finished steel production stood at 1.94 million mt, down by 1.0 percent, both year on year. Its steel shipments in the given period went up by 2.8 percent year on year to 1.84 million mt.

According to SSAB, local steel demand during the second quarter of 2021 is estimated to be very strong, driven by customer restocking. SSAB also anticipates that global demand for high-strength steel will be very strong during the second quarter in almost all markets in all geographies. The company also noted that shipments are expected to be at a high level during the second quarter of 2021, albeit somewhat lower than the record-high shipments reported in the first quarter.

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