SSAB experiences earnings decline in Q3

Sweden-based steel producer SSAB has reported operating earnings of about $392 million in the third quarter of 2023, marking a 27.7 percent decline from last year’s third quarter.

The company operates five steel mills in Finland and Sweden and two in the United States—a 1.2 million metric tons-per-year electric arc furnace (EAF) mill in Alabama and another EAF mill of about the same size in Montpelier, Iowa.

The company says despite its earnings tapering off in its most recently completed quarter, its “transformation to fossil-free steel” continues.

SSAB President and CEO Martin Lindqvist says the earnings decrease, compared with the high level last year, mostly was due to weaker markets for SSAB Europe, Tibnor and Ruukki Construction. The company’s Tibnor subsidiary is a metals distributor in Europe while Ruuki Construction offers fabricated metal building components on that continent.

Lindqvist says SSAB continues to generate strong cash flows, and points to double-digit margins in several of the company’s operating units.

“SSAB Special Steels had [an] operating margin of 23 percent,” Lindqvist says, noting that was down from 28 percent a year ago. “SSAB Special Steels has a strong position on the market for high-strength steels, with products that add significant customer value in the form of higher productivity and sustainability performance."

Regarding the company’s two American mills, Lindqvist says, “SSAB Americas’ [operating] margin was 35 percent,” which compares with 37 percent from last year’s third quarter. The heavy steel plate market in North America was more stable during the quarter, he adds, making a comparison with Europe, where conditions were slower.

“Demand in Europe is weak and the seasonal slowdown during the third quarter was more pronounced than normal,” Lindqvist says. “In SSAB Special Steels' markets, customers have adopted a more cautious approach, especially in Europe.”