Swedish steelmaker SSAB has announced a swing to a net profit in the fourth quarter, following a substantial write-down in the previous year. However, the company also highlighted a weak market and lower prices which impacted sales.
Solid Net Profit Growth
SSAB reported a net profit of 1.90 billion Swedish kronor ($182.5 million) for Q4, compared to a loss of SEK29.99 billion in the same period last year. The previous year’s loss included impairment charges related to the acquisitions of Ipsco and Rautaruukki.
Revenue Decline
Revenue for the quarter stood at SEK26.47 billion, down from SEK30.14 billion in the previous year. The decline in revenue was attributed to lower prices in both Europe and the Americas.
Operating Profit Recovery
SSAB managed to turn things around in terms of operating profit, posting a significant improvement from a loss of SEK29.50 billion to a profit of SEK2.40 billion in the fourth quarter.
Analyst Expectations
According to consensus estimates provided by the company, analysts had expected SSAB to report an operating profit of SEK1.91 billion on revenue of SEK25.86 billion.
Positive Outlook
SSAB is optimistic about the future, expressing its expectation for a considerable increase in shipments of special steels in the first quarter compared to Q4. Additionally, they anticipate higher shipments in both Europe and the Americas.