Swedish specialty steel producer SSAB has posted its financial results for the first quarter of the current year, reporting a net loss of SEK 137 million, compared to a net profit of SEK 281 million in the corresponding quarter of 2012. The company's sales amounted to SEK 8.83 billion, down 20 percent year on year, due to lower prices, lower volumes, a weaker product mix and currency effects. In the given quarter, SSAB posted an operating loss of SEK 136 million, compared to an operating profit of SEK 479 million in the first quarter of the previous year.
During the first quarter, SSAB's crude steel output decreased by seven percent, while finished steel production fell three percent, both year on year. Its shipments in the given period fell by six percent to 1.1 million mt compared to the corresponding quarter of the previous year.
According to SSAB, while it remains difficult to assess demand, due to the economic and political instability in many countries, the restocking by customers which took place during the first quarter is expected to come to an end during the second quarter. While the scheduled maintenance outage at SSAB's Montpelier operations will reduce earnings by approximately SEK 150 million, the total production volumes in the second quarter are expected to be somewhat higher than in the first quarter.
