Interim report Q2 2024: Growth in Automotive premium steel in a weak market

The second quarter

• Revenue was SEK 28,282 (31,777) million
• Operating result was SEK 2,969 (4,963) million
• Earnings per share were SEK 2.43 (3.81)
• Net cash was SEK 14.1 (11.7) billion

Comments by the CEO

SSAB’s operating result for the second quarter of 2024 amounted to SEK 2,969 (4,963) million. The decrease compared to a year earlier was primarily due to lower US heavy plate prices. The market in Europe continued to be relatively weak, whereas the market for high-strength steel was more resilient. Compared to the first quarter, the operating result was somewhat lower, whereas operating cash flow increased by more than SEK 1 billion.

SSAB Special Steels had an operating result of SEK 1,659 (2,003) million and an operating margin of 21% (23%) during the quarter. SSAB Special Steels’ unique offering provides added value for our customers and this in turn translates into more stable prices than for standard products. SSAB Americas’ operating result for the second quarter decreased to SEK 1,204 (2,642) million and the operating margin was 19% (34%), as prices weakened. SSAB Europe had an operating result of SEK 400 (764) million and an operating margin of 3% (6%). The market was weak and the political strikes in Finland had a negative effect of around SEK 125 million, while shipments to the car industry (Automotive Advanced High Strength Steels) reached a record level, supported by SSAB’s advanced products as well as our leading position in emission-free steels.

Safety performance continued to improve and LTIF decreased to 0.64 (1.01) during the quarter.

The market in Europe was relatively weak during the second quarter and the US heavy plate market weakened. During the third quarter, SSAB will carry out planned maintenance at most production sites and this will be reflected in lower output. SSAB Americas will bring forward the maintenance stop at the Montpelier mill. Demand is seasonally lower in the third quarter, especially in Europe, and the assessment is for a more pronounced decrease than normal. The market is challenging for Tibnor and Ruukki Construction but measures to reduce costs had a positive effect in the second quarter.

The transformation to fossil-free steelmaking continues with a focus on the conversion of Oxelösund and the planning of the state-of-the-art, highly-effective mini-mill in Luleå. The new mill in Luleå will reduce Sweden’s carbon dioxide emissions by 7% in addition to the 3% reduction from the conversion of the mill in Oxelösund. SSAB’s updated targets to reduce greenhouse gas emissions were approved by the Science Based Targets initiative (SBTi) during the second quarter. Approval means that the targets are scientifically based and in line with the SBTi's raised requirements for companies to deliver on the goal of limiting global warming to 1.5°C.

In conjunction with the above, SSAB launched a new combined Green and Sustainability-Linked Finance Framework that will support SSAB’s transformation to fossil-free steelmaking and investments in more efficient and flexible production systems. The combined framework provides SSAB with an opportunity to issue both green and sustainability-linked financing instruments as well as a combination of the two.

 

SSAB invites you to a presentation of the Q2 2024 report at 9.30am CEST on Wednesday, July 24, 2024.

The report will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Leena Craelius.

The press conference will be held in English and live webcast on SSAB’s website www.ssab.com.

Link to webcast: https://edge.media-server.com/mmc/p/3yfsbz9x

 You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can choose if you want to dial in or click “Call Me” for a call-back.

Link to teleconference: https://register.vevent.com/register/BI605cd258717c41c187d7d7e5b8dd7a34

 

For further information, please contact:
Per Hillström, Head of Investor Relations, [email protected], phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
[email protected], phone: +46 72 233 5288

This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CEST on July 24, 2024.