SSAB's report for the first quarter of 2011

SSAB's report for the first quarter of 2011

The quarter

• Sales increased by 25 % to SEK 11,056 (8,865) million 

• Operating profit improved to SEK 616 (168) million. Currency affects
earnings by SEK -300 million.  

• Profit after financial items improved to SEK 504 (83) million.
Currency affects earnings by SEK -300 million.            

• Earnings per share of SEK 1.20 (0.44)                  

• Operating cash flow of SEK 237 (256) million and cash flow from
current operations of SEK -89 (447) million  

• The net debt/equity ratio amounted to 60 % compared with 58 % at year
end

• Shipments of niche products increased by 35 % during the first quarter
compared with the first quarter of last year

• Niche products now account for 37 (29) % of steel shipments    
              

(Amounts in the report in brackets relate to the corresponding period of
last year.)

Comments by the CEO

Demand for steel strengthened during the first quarter and steel prices
increased, partly as a consequence of improved underlying demand, and
partly due to pre-buying behavior by our
customers.                                 

As far as SSAB is concerned, we had a positive development during the
first quarter. We saw a clear improvement in earnings compared with the
same period of last year, with an operating profit of SEK 616
million.                        

Order intake for SSAB's niche products remained strong, primarily from
the Material Handling (which includes the mining industry), Heavy
Transport, and Automotive segments. Demand from certain parts of the
Construction segment, such as the crane industry, as well as ordinary
steels, improved during the quarter.

North America was the region that performed most strongly during the
quarter, while the recovery in southern Europe continues to proceed
slowly.

We encountered certain disruptions in production at the beginning of the
quarter, among other things due to the harsh winter and a chilled hearth
in one of the blast furnaces in Oxelösund. Production is now once again
stable and we are producing at a normal level. The planned maintenance
outage in Mobile has been completed as planned.

Shipments of SSAB's products are expected to increase slightly in the
second quarter. Demand is expected to continue at a good level,
particularly in Asia and Latin America, but in North America as well.
The recovery in southern Europe is proceeding more slowly, while
northern Europe has seen a somewhat more positive trend. We anticipate
continued strong demand for our niche products. Price levels in
renegotiated agreements for the second quarter will be higher than in
the first quarter.

There is, however, a continued risk for excess industry capacity unless
underlying demand continues to strengthen. Other uncertainty factors
going forward are the consequences of the natural disasters in Japan and
the unrest in North Africa.

Scrap steel prices have been stable during the first quarter while spot
prices for coal and iron ore have continued to increase. This means that
our purchase prices will increase during the second quarter. We do not
anticipate that the price increases that we are currently carrying out
will fully offset the expected increased raw materials prices, but our
long-term aim is to compensate in full for increasing coal and iron ore
prices.

It is clear that demand for steel has strengthened. During the second
half of the year, we know that higher raw materials prices will have an
increased impact, while at the same time, we will be carrying out
extended maintenance outages due to the investment program.

Martin Lindqvist, President and CEO

Presentation of the quarterly report
SSAB invites to a presentation of the quarterly report today April 29,
2011.
Venue and time of briefing: World Trade Center (WTC) Stockholm,
Kungsbron 1, Conference room Manhattan, 10:00 a.m. CET.
The press conference will be held 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 downloading.

For further information, please contact:

Helena Stålnert, Executive Vice President, Communications, +46 8 45
45 734
Catarina Ihre, Director, Investor Relations, +46 8 45 45 729