Swedish specialty steel producer SSAB has posted its financial results for 2019. The company has reported a net profit of SEK 1.28 billion ($132.78 million) for 2019, declining from SEK 3.8 billion ($395 million) recorded in the previous year. In 2019, the company's sales revenues increased by two percent year on year to SEK 76.5 billion ($7.94 billion) owing to higher prices and lower shipments.
In its press release, the company said its operating profit in 2019 was SEK 2.16 billion ($224.11 million), down 58.3 percent from SEK 5.18 billion ($537.52 million) recorded in 2018. The decrease is attributed to decreasing profitability of SSAB Europe due to lower shipments and prices and higher raw material costs.
Meanwhile, SSAB's crude steel output in 2019 dropped by five percent to 7.62 million mt, while its finished steel production stood at 6.99 million mt, down by 5.4 percent, both year on year. Its steel shipments in the given period went down by 4.9 percent year on year to 6.56 million mt.
In North America, demand for heavy plate is expected to remain stable during the first quarter of 2020. In Europe, demand is expected to increase from a relatively low level recorded in the fourth quarter of 2019. Global demand for high-strength steels is expected to improve, primarily related to Europe during the first quarter of 2020.
For SSAB Americas, shipments during the first quarter of 2020 are expected to increase compared with the last quarter of 2019, which was affected by the planned maintenance outage in Mobile. SSAB Europe and SSAB Special Steels are also expected to increase volumes compared with the fourth quarter of 2019.