Swedish specialty steel producer SSAB has posted its financial results for 2017, reporting a net profit of SEK 2.31 billion ($293.22 million) compared to the net profit of SEK 943 million recorded in the previous year. The company's sales amounted to SEK 66.059 billion ($8.38 billion) in the given year, increasing by 19.3 percent year on year. As regards the sales, higher prices had a positive impact of 14 percentage points, higher volumes a positive impact of four percentage points, with a better product mix and other sales each contributing a positive impact of one percentage point, whereas currency effects had a negative impact of one percentage point.
Meanwhile, SSAB’s operating profit in 2017 amounted to SEK 3.83 billion ($486.96 million), rising by SEK 2.625 million from the previous year. Improved earnings were primarily driven by higher prices and continued growth for high-strength steels in the automotive segment within SSAB Europe, and significantly higher shipments within SSAB Special Steels.
In 2017, SSAB's crude steel output remained at the same level as in 2016, while its finished steel production was up three percent year on year. Its shipments in the given period rose by four percent to 6.91 million mt compared to the previous year.
According to SSAB, in North America, demand for heavy plate is expected to be good during the first quarter of the current year. Similarly in Europe, demand for strip and heavy plate is expected to remain good. It is anticipated that the underlying demand for high-strength steel will continue to show positive development. Shipments by SSAB Europe and SSAB Americas during the first quarter of this year are expected to be somewhat higher than during the fourth quarter of 2017, whereas shipments by SSAB Special Steels are expected to be stable. It is anticipated that overall the prices realized during the first quarter by SSAB’s three steel divisions will be somewhat higher compared with the fourth quarter of 2017, although this impact will to a certain extent be counteracted by higher raw material costs.