Swedish steelmaker SSAB posted a 4% revenue rise to SEK 31.2 billion in Q2, but operating profit slid 8% as weaker steel prices offset higher shipments. The CEO cited subdued European demand, with special steels outperforming commodity plate.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Swedish steelmaker SSAB reported a 4% gain in Q2 revenue to SEK 31.2 billion on Tuesday, though operating profit fell 8% to SEK 3.8 billion as weaker steel prices outweighed higher shipment volumes, the company said.
CEO Johnny Sjöström described European steel demand as "subdued," with no clear recovery signal from construction or automotive buyers. The special steels division outperformed the commodity plate business, which faced pressure from Asian imports.
SSAB shipped 1.75 million tonnes of steel in the quarter, up from 1.68 million a year earlier. Average selling prices dropped roughly 6% year-on-year, the company said.
The board kept its dividend policy unchanged and ruled out a buyback program at current valuation levels.
For the second half, SSAB expects European deliveries to remain flat. The company flagged maintenance downtime at its Oxelösund mill in August, which will cut Q3 output by roughly 30,000 tonnes.
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