Sweden’s SSAB saw its operating profit fall sharply to SEK 487 mln (USD 44 mln) in the December quarter, down from SEK 2.40 bln a year earlier, driven by weak demand and lower prices.
Markets in Europe and North America were generally sluggish, though SSAB’s high-strength steel and premium products showed more resilience. Prices in the U.S. were significantly lower compared to the previous year, and the weak market in Europe impacted both SSAB Special Steels and SSAB Europe. However, cash flow remained strong in the fourth quarter, supported by a release of working capital, according to CEO Johnny Sjostrom.
SSAB’s revenue for Q4 2024 dropped 10.8 pct YoY to SEK 23.6 bln (USD 2.1 bln), primarily due to lower prices and reduced shipments. For the full year, the company reported a 13 pct decline in revenue to SEK 103.4 bln (USD 9.3 bln), while operating profit plunged 52 pct to SEK 7.86 bln (USD 707 mln).
Looking ahead, SSAB expects steel demand to remain weak in its key markets, Europe and North America, during the first quarter of 2025, though shipments are expected to improve seasonally. Shipments from SSAB Special Steels are projected to be significantly higher compared to the fourth quarter of 2024, although prices are likely to be somewhat lower. Similarly, SSAB Europe expects a significant increase in shipments, while prices are expected to decrease. SSAB Americas anticipates slightly higher shipments, with a slight drop in prices.
The cost of raw materials for SSAB Special Steels and SSAB Europe is expected to remain stable, while SSAB Americas anticipates a slight increase in raw material costs.
1 USD / 11.1 SEK
