SSAB Results for 2012
STOCKHOLM -- February 8, 2013
*Sales of SEK 8,354 (10,898) million
*Operating profit/loss of SEK -665 (50) million
*Loss after financial items of SEK -842 (-98) million
*Earnings per share of SEK -0.70 (-0.23)
*Operating cash flow of SEK 1,251 (1,671) million and cash flow from
current operations of SEK 1,049 (1,828) million
The full year
*Sales of SEK 38,923 (44,640) million
*Operating profit/loss of SEK -96 (2,512) million
*Profit/loss after financial items of SEK -693 (1,998) million
*Earnings per share of SEK 0.05 (4.82)
*Operating cash flow of SEK 4,929 (2,821) million and cash flow from
current operations of SEK 3,925 (2,200) million
*Niche products accounted for 38 (37)% of steel shipments
*A dividend is proposed of SEK 1.00 (2.00) per share, equal to SEK 324
*A reduced tax rate in Sweden impacted, as a one-time item, positively on
taxes with SEK 253 million
Comments by the CEO
The steel markets continued to perform negatively following the deterioration
in order inflow we witnessed at the beginning of the autumn. The weak trend
pertains particularly to the European market, but North American and Asian
customers also adopted a wait-and-see approach. Prices of standard products
fell during the quarter. Quenched steel prices continued to exhibit greater
Many of our customers had longer than normal production outages during
December and the beginning of January. At the same time at the customer level,
the inventory reduction process which began during the third quarter
continued. This also affected our order books for both standard steels and
niche steels. Shipments during the fourth quarter were 1% lower than in the
third quarter and 13% lower than in the fourth quarter 2011.
Thanks to our continued work on improving inventory management and working
capital, we were able to deliver a strong cash flow of SEK 1.2 billion,
despite a weak earnings trend. Thus, our net debt/equity ratio was reduced
even further, to 54 per cent. At the beginning of 2012, the net debt/equity
ratio was 60 per cent.
There are currently signs of a revival in economic activity in North America
and Asia as compared with the fourth quarter of 2012. It is our assessment
that volumes will continue to increase somewhat within SSAB Americas and SSAB
APAC during the first quarter of 2013, as compared with the fourth quarter.
The trend in Europe still remains weak and difficult to assess.
Generally speaking, steel prices appear to have stabilized. We will also see
certain easing on the cost side as the lower raw material prices will have a
positive impact on earnings by approximately SEK 200 million during the first
The efficiency program within SSAB EMEA is proceeding according to plan and we
will achieve the previously announced cost savings of approximately SEK 800
million on an annual basis as from 2014. The entire efficiency program is
aimed to improve our competitiveness and increasing flexibility, in order to
better address fluctuations in the market. In addition to the efficiency
program, a program involving a cut in work hours and pay has been introduced
for both blue-collar employees and white-collar staff in SSAB Sweden. The
program runs from December 2012 until the end of May 2013.
Our major investments are now complete and we can now supply a range of
products with unique breadth and quality when the market turns.
Martin Lindqvist President and CEO
Presentation of the half-year report
SSAB invites to a presentation of the half-year report today February 8, 2013.
Venue and time of briefing: World Trade Center (WTC) Stockholm, Kungsbron 1,
Conference room Manhattan, 09:30 a.m. CET.
The press conference will beheld in English and live webcasted on SSAB's
website www.ssab.com. Instructions on how to participate in the webcast will
be available on SSAB's website, including presentation material for
This information is such that SSAB must disclose in accordance with the
Securities Markets Act. The information was submitted for publication on
February 8, 2013 at 08.00 am.
SSAB is a global leader in value added, high strength steel. SSAB offers
products developed in close cooperation with its customers to create a
stronger, lighter and more sustainable world. SSAB has employees in over 45
countries and operates production facilities in Sweden and the US. SSAB is
listed on the NASDAQ OMX Nordic Exchange, Stockholm. www.ssab.com.
This information was brought to you by Cision http://www.cisionwire.com
Executive VP Communications
Tel.+46 8 - 45 45 734
Director, Investor Relations
Tel. +46 8 - 45 45729
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