SSAB plans to reduce production in Europe in the second half of the year after a weak performance in the second quarter, while its North American unit performed well in the period.
In its Q2 report, the Swedish group highlights that it lifted key figures over the first quarter. In comparison with the corresponding quarter of 2024, however, it conceded drops in profit, while shipments rose in some areas. Automotive sales nevertheless performed well in Europe.
On revenue of SEK 25,631 million ($2.69 billion) in the reporting quarter – down from SEK 28,282m in Q2 2024 – SSAB’s operating result came to SEK 2,140m, down from SEK 2,969m.
The decrease compared to last year was mainly related to lower prices of standard steel. Compared to Q1 this year, the result improved, primarily driven by increased prices at SSAB Americas.
The market in Europe kept weakening, and, as a consequence, SSAB Europe will adjust production and staffing levels during Q3, which is also typically seasonally slow. During a conference call on Wednesday monitored by Kallanish, company chief executive Johnny Sjöström noted that no blast furnaces will be taken out, and that the cutbacks will be largely in line with necessary maintenance.
Looking at the company’s three main divisions, SSAB Special Steels continued to keep more price stability than standard products over the business cycle. The division reported an operating result of SEK 1,480m – versus SEK 1,659m in Q2 2024 – on a tonnage of 325,000 tonnes, down from 337,000t.
SSAB Americas’ operating result amounted to SEK 807m – versus SEK 1,204m a year earlier – on an increased tonnage of 487,000t versus 439,000t.
SSAB Europe nevertheless lifted its volumes, to 895,000t, up from 870,000t in Q2 2024, helped by record-high shipments of high-strength steel to the automotive industry. SSAB thereby grew its business in contrast to the general trend of shrinking automotive business for European steelmakers, Sjöström said.
Christian Koehl Germany
