Results for 2014
- Sales of SEK 15,200 (9,387) million, of which SEK 5,290 million come from Rautaruukki
- Excluding items affecting comparability, operating profit/loss of SEK 118 (-294) million
- Excluding items affecting comparability, loss after financial items of SEK -82 (-448) million
- Earnings per share of SEK -2.39 (-0.82)
- Items affecting comparability affected profit/loss after tax by SEK -1 322 million and earnings per share by
- Operating cash flow of SEK 1,407 (575) million
- The acquisition analysis of Rautaruukki was completed during the fourth quarter. Based on the final acquisition analysis, the operating profit for the third quarter has been adjusted by SEK -27 million and amounted to SEK 229 million (see page 16)
- Sales of SEK 47,752 (36,455) million, of which SEK 8,824 million come from Rautaruukki
- Excluding items affecting comparability, operating profit/loss of SEK 894 (-1,204) million
- Excluding items affecting comparability, profit/loss after financial items of SEK 242 (-1,801) million
- Earnings per share of SEK -3.33 (-3.29)
- Items affecting comparability affected profit after tax by SEK -1,778 million and earnings per share by SEK -4.24
- Operating cash flow of SEK 1,737 (1,956) million
- A dividend is proposed of SEK 0 (0) per share
Comments by the CEO
The operating profit, excluding items affecting comparability, for the fourth quarter of 2014 was SEK 118 million, an improvement of approximately SEK 400 million compared with the fourth quarter of 2013. The improvement was driven primarily by lower costs in the European operations and higher prices in North America. Compared with the third quarter, the underlying operating profit declined by approximately SEK 200 million due to seasonally weaker demand towards the end of the year as well as a maintenance outage in the US. The operating cash flow during the fourth quarter was SEK 1.4 billion, driven largely by a reduction in working capital.
Demand in North America experienced a seasonal slowdown towards the end of the fourth quarter. The market was affected by high import volumes as well as increased inventory levels at distributors. In Europe, demand was stable in October and November but seasonally lower in December. Demand for our special steels was stable during the fourth quarter, but with major geographic variations; it was relatively strong in the US but remained challenging on a number of emerging markets.
We expect that our American operations will continue to develop positively in 2015, driven by strong demand and high efficiency at our steel mills. However, increased imports of plate into North America represent an uncertainty factor, as does the fact that inventory levels at distributors at the start of 2015 are somewhat high. In Europe, underlying demand in 2015 is expected to demonstrate a slight upward trend, but there is great uncertainty regarding the recovery. The prospects for Eastern Europe have deteriorated, and the impact this will have on the rest of Europe remains unclear. Demand for special steels is expected to be relatively stable during the year, and thus our growth will be generated through continued development of new applications and new markets. The single most important event for SSAB in 2014 was the combination with Rautaruukki. We are now creating a more efficient and flexible steel company, while at the same time strengthening our possibilities to continue to develop globally our leading position within special steels. Although the markets improved in 2014 the relatively weak recovery underscores the need for continued efficiency improvements combined with a continued development of our customer offering. The integration with Rautaruukki has started well and in line with our plans and we will achieve the synergy targets we have set. The work on realizing synergies is proceeding well and, during Q4, activities were carried out corresponding to an annual improvement in earnings of SEK 300 million. The current assessment is that our target of annual savings of SEK 1.4 billion can be implemented more quickly and that the full annualized effect will be reflected from the second half of 2016 onwards.
This information is such that SSAB must disclose in accordance with the Securities Markets Act. The information was submitted for publication on February 10, 2015 at 07.30 am.
Invitation to SSAB’s year-end report 2014 results briefing
SSAB invites you to a presentation of the year-end report at 09.30 a.m. CET on Tuesday, February 10, 2015.
The year-end report 2014 will be presented by SSAB’s President and CEO Martin Lindqvist and CFO Håkan Folin.
The press conference will be held in English and live webcasted on SSAB’s website www.ssab.com. It is also possible to participate in the briefing via telephone.
Venue and time of briefing: World Trade Center (WTC) Stockholm, Kungsbron 1, Conference room Manhattan, 09:30 a.m. CET.
Telephone numbers: +46 8 519 990 31 (Sweden), +44 203 364 53 73 (UK),
+1 855 753 22 30 (USA).
Link to webcast: Go to webcast
For further information:
Andreas Koch, Director IR and Financial Communications, Tel. +46 70 509 77 61
Marie Elfstrand, Director Media Relations and PR, Tel. +46 8 45 45 734