Continued strong earnings trend
SSAB today reports a profit after financial items of SEK 4,011 (3,334) million for the first half of 2007 and SEK 1,864 (1,776) million for the second quarter. For the most recent twelve-month period, return on capital employed amounted to 38% and return on equity to 31%.
- "The results for the first half of the year are the best in SSAB's history and our company is continuing to deliver profitability on par with the performance of the best companies in our industry. Our business concept, strategy and business model are the cornerstones behind this trend relative to our industry. Driving forces such as high strength, weight reduction and abrasion resistance are important for the steel industry's customers, and will continue to be so in the future. SSAB is able to deliver high-value products which meet these demands from customers, with whom we share the value that is created," says President and CEO Olof Faxander.
- "The market for our core niche products remains very strong. Our deliveries of core niche products have increased by 7% during the second quarter compared with the second quarter of last year and by 12% during the first half of the year. During the second quarter, deliveries of quenched steels were negatively affected by the ongoing investment projects and by minor disruptions in production, but nevertheless increased by 3%. We are not satisfied with the performance, but these are temporary effects and we will obtain additional capacity to increase our pace of deliveries after the summer. The market situation for quenched steels is excellent and our customers generally also have strong order books," continues Olof Faxander.
- "The economy for the engineering and construction industries in the Nordic region remains strong, which benefits our subsidiaries, Tibnor and Plannja. The Nordic market is strategically important for us and we are satisfied with the pace of deliveries and profitability delivered by the companies.
- IPSCO's shareholders have now accepted our bid and we expect to take over the company on July 18. This is an extraordinarily important step for us in achieving global leadership within advanced high-strength steels and quenched steels in order to create growth with high productivity within these core niche products in
North American and other regions. We are extremely pleased to be able to create such a strong combination for the future," says Olof Faxander.
- "In conclusion, I wish to state that in all probability 2007 will be yet another strong year for the steel industry and we look forward to deliveries of our core niche products continuing to increase during the remainder of the year. Directly after the takeover of IPSCO, we will begin the work on integrating the company into SSAB. We are very optimistic as regards the possibilities that are opened up for our customers, shareholders and our employees," concludes Olof Faxander.
Presentation in English, July 17, 1.00pm CET:
A combined broadcast over the Internet (webcast) and telephone conference arranged at 1.00pm Central European Time for the financial market and media in which SSAB will present the results for the second quarter. In order to participate, the following apply:
Link for the Internet broadcast is available on our website, www.ssab.se or www.ssab.com
Great Britain: + 44 (0)207 108 6205, Sweden: + 46 (0)8 506 269 04
If you choose to call, presentation pictures are available on our website under Presentations.
Presentation in Swedish on July 17, 3.00pm CET (refreshments served 2.30pm):
SSAB will arrange a presentation for the financial market and media at Spårvagnshallarna, Birger Jarlsgatan 57A, Stockholm at 3.00pm Central European Time. Refreshments will be served from 2.30pm CET.