SSAB Report for the third quarter of 2013

The quarter

  · Sales of SEK 8,375 (8,730) million
  · Operating loss of SEK -598 (-665) million
  · Loss after financial items of SEK -741 (-789) million
  · Earnings per share of SEK -1.61 (-1.60)
  · Operating cash flow of SEK 500 (843) million and cash flow from current
operations of SEK 373 (697) million


Comments by the CEO

Earnings in the third quarter improved slightly by almost SEK 70 million
compared with the same quarter of last year. The improvement is primarily
attributable to lower fixed and variable costs, higher volumes and improved
capacity utilization, in total SEK 900 million. At the same time, earnings were
negatively affected by weaker prices, product mix and currency effects, in total
SEK 830 million. Cash flow continued to be positive during the third quarter
and, so far this year, we have generated operating cash flows of SEK 1.4 billion
and reduced our net debt by approximately SEK 500 million.

Global demand for steel during the third quarter was on the same level as during
the second quarter, and SSAB's shipments were unchanged compared with the
previous quarter. However, the product mix changed somewhat towards a higher
percentage of standard steels as demand for niche products within the mining
industry and construction machinery was weakening. Otherwise, the quarter was
characterized by extensive summer outages and scheduled maintenance outages
which affected the earnings of EMEA and Americas by, in total, approximately SEK
300 million. The maintenance outage in Americas was originally scheduled for the
fourth quarter, but was moved to the third quarter in order to better utilize
production capacity in the fourth quarter.

The gradual recovery in the US is beginning to impact on demand for steel and it
has, to a certain extent, been possible to carry out the price increases
previously announced in the third quarter. The trend as regards the European
economy was unchanged during the quarter. The Chinese economy continues to grow,
but we can note that our major customers still hold large stocks, a factor which
has negatively affected demand for our products.

The efficiency program within EMEA has been carried out and we are continuing to
focus strongly on cost efficiency. Also in Americas, work is taking place
continuously to ensure that we maintain our position as the most cost-efficient
plate producer in North America. In APAC, we are working actively to broaden the
customer base and, so far this year, we have gained more than 500 new customers.

During the fourth quarter, we expect that the US economic recovery will have a
positive impact on demand for steel. In the middle of October, SSAB Americas
announced a price increase for plate of USD 30 per tonne. In Europe, demand and
prices for steel is expected to remain unchanged but in Asia, demand for steel
is expected to grow positively.


For further information:
Maria Långberg, Executive VP Communications Tel. +46 8-45 45 727
Catarina Ihre, Director, Investor Relations, Tel. +46 8-45 45 729