Updated financial information from SSAB The value of net

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Jan 20, 2015 at 2:45 AM

Updated financial information from SSAB

The value of net assets from the acquisition of the Finnish company Rautaruukki has now been confirmed as per the acquisition date of July 29, 2014 and results in goodwill of SEK 5.2 billion. In conjunction with a review of the asset value for the year-end results, it has been decided to write down certain book values by SEK 1.3 billion. This primarily relates to the partly-owned company Fortaco and goodwill in Ruukki Construction. The write-downs mean a decrease of SEK 0.3 billion in the goodwill arising from the acquisition of Rautaruukki. Good progress is being made on the work to achieve synergies following the acquisition of Rautaruukki, and to date actions have been carried out equating to annual synergies of SEK 300 million. The original goal was to achieve annual cost synergies of SEK 1.4 billion within three years, of which SEK 350 million was scheduled for 2015. The current assessment is that the cost synergies can be carried out more quickly and that the full annualized effect will be reflected from the second half of 2016 onwards, which is one year faster than announced earlier. The financial statements for the fourth quarter of 2014 are still being completed, but the preliminary estimate is that the operating result for the fourth quarter will be between SEK 100 million and 150 million (excluding items affecting comparability). The acquisition analysis of the net assets in Rautaruukki has been completed. Net assets have been confirmed as totaling SEK 9,789 million as at July 29, 2014. The acquisition cost through the share exchange offer amounted to SEK 14,967 million, which results in goodwill of SEK 5,178 million. In addition to goodwill, the surplus value of the acquisition amounts to SEK 0.8 billion divided into a number of different asset and liability classes. Depreciation periods for these vary depending on asset class. In 2014, depreciation of surplus values had a negative impact amounting to SEK 57 million, of which SEK 23 million was for the third quarter and SEK 34 million for the fourth quarter. In 2015 and 2016, depreciation of the surplus value relating to the acquisition of Rautaruukki is estimated to amount to SEK 210 million per year. More details about surplus values and depreciation will be given in conjunction with the year-end results, which will be published on February 10, 2015. In conjunction with a review and updated valuations of SSAB’s assets for the year-end results, a decision has been made to write down certain book values by around SEK 1.3 billion. This will impact negatively on the pre-tax result for the fourth quarter and will be reported as items affecting comparability. The impact on the operating result will be around SEK 700 million, and the financial items will be impacted by a further SEK 600 million, which mostly relates to shareholder loans to the partly-owned company Fortaco. Other write-downs relate, among other things, to goodwill within the Ruukki Construction business area and to expected capital losses arising from units to be divested as a result of the European Commission’s conditions for approval of the combination with Rautaruukki. The write-downs have no impact on cash flow, but have a negative impact of around 2 percentage points on SSAB’s debt/equity ratio, which was 53% as at September 30, 2014. Only a minor part of the write-downs above are related to achievement of the synergies identified in conjunction with the acquisition of Rautaruukki. Synergy work is actively under way and good progress is being made. Annual cost savings amount to SEK 300 million for actions carried out to date and these will impact the result from the first quarter of 2015 onwards. The goal for 2015 was to achieve cost synergies of SEK 350 million. The current assessment is that it will be possible to carry out the cost synergies more quickly than announced earlier and that SSAB will be able to achieve annualized savings of SEK 1.4 billion from the second half of 2016 onwards, which is one year faster than announced earlier. The financial statements for the fourth quarter of 2014 are still being completed, but the preliminary estimate (unaudited figures) is that the operating result for the fourth quarter will be between SEK 100 million and 150 million (excluding items affecting comparability, but including depreciation according to the plan of surplus value relating to the acquisitions of Ipsco and Rautaruukki). For further information, please contact Andreas Koch, Head of Investor Relations, andreas.koch@ssab.com, +46 8 454 5729 This information is published by SSAB pursuant to the requirements of the Finnish Securities Market Act and the Swedish Securities Market Act. Submitted for publication at 08.30 am CET, January 20, 2015. SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary listing on the NASDAQ OMX in Helsinki. www.ssab.com.

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Alaska's Insurance Maze: Coverage Over Cheap Policies

Beyond Premiums: Assessing Real Coverage Needs The Alaskan wilderness isn't just home to stunning views; it's also a land where insurance needs to go beyond the average cookie-cutter policy. You'd think the cheapest option would suffice, but that's where residents might trip into financial quicksand. Devery Prince, a seasoned insurance principal, sheds light on why...

Survivors Secure $800M Settlement with NY Archdiocese

Massive Settlement: A Long-Awaited Justice Here's a different kind of news that's hitting like a thunderbolt. Over 1,300 survivors of abuse have finally struck a landmark deal with the Archdiocese of New York. Not only are the numbers staggering, but the relief for these individuals is palpable. We're talking about more than $800 million on the table here. That's some...

CSTS Unveils PremierX in NYC: A Bold Entertainment Move

Welcome to the New Era of Entertainment Out of the blockbusters and into the open air, eh? On October 30, 2026, CSTS Enterprises flipped the New York skyline into a canvas for their grand kickoff of PremierXTM—a live entertainment brand poised to redefine how we gobble up our music, sport, and art. Now, there's a shot of adrenaline New Yorkers weren't exactly begging...

Master Sommeliers and Italian Producers Clash on Wine Lists

Wines Jockeying for New York’s Coveted Lists Alright, picture a stage set up in New York City like an arena. But instead of gladiators, you've got master sommeliers on one side and Italian wine producers on the other, each armed with their own arguments. They're locked in a battle over what it really takes to get a bottle imbedded on a New York City's prestigious wine...

World Young Scientist Summit 2026 in Wenzhou Kicks Off

Young Minds Meet AI Innovation Crack open the playbook, and it's clear: young brains from across the globe are gathering in Wenzhou, Zhejiang, China, to wrangle with AI and chart the course of science toward a sustainable future. The World Young Scientist Summit 2026 isn't just a parade of speeches and accolades. Nah, it's a deep dive into where innovative minds believe...

Beta Bionics Faces Class Action Lawsuit Amid FDA Concerns

Beta Bionics in the Legal Crosshairs When a company like Beta Bionics gets hauled into court, you know it's not just smoky mirrors and boardroom politics. The stakes are high right now, with investors lining up for a class-action lawsuit that zeroes in on a nasty bundle of allegations. This isn't just a blip on the radar. It's a seismic wave in the industry. Allegations...

ASTS Faces Crucial Deadline Amidst Legal Turmoil

Ah, the ticking clock in the world of stock investments, where a nifty little thing called a class action lawsuit can flip your investment on its head. Right now, AST SpaceMobile (NASDAQ: ASTS) investors are staring down the barrel of one such lawsuit. With the November 13, 2026, deadline looming, it's time to sort the facts from the muck. Pins and Needles for ASTS...

Spooky Dining at CARNE: A Halloween Hit in Oxnard

A Festive Transformation at CARNE Rolling into Oxnard, you're met with an unconventional dining spectacle at CARNE. It's not your average restaurant fare as they've pulled out the stops with their spirited Halloween pop-up, A Nightmare at CARNE. Channeling the eerie charm of "The Nightmare Before Christmas," this temporary transformation morphs the venue into a lively,...

TORRAS Stands Tall with iPhone 18 Pro Cases

By Riley Hayes Updated Oct 24, 2026 Category News Views 150

TORRAS Shines in Magnetic Stand Case Evaluation In the whirlwind of smartphone accessories, where the battle lines are drawn between protection and functionality, TORRAS has emerged victorious with its magnetic stand cases for the iPhone 18 Pro and its beefier brother, the iPhone 18 Pro Max. Expert Consumers—a trusted name in product evaluations—has given TORRAS the...

Duolingo Faces Class Action: Deadline Looms for Plaintiffs

Shaking up the education sector like a hot potato, investors have been thrown for a loop with Duolingo’s latest legal debacle. News broke that Kahn Swick & Foti, LLC, with significant backing from their heavyweight partner and former Louisiana Attorney General Charles C. Foti Jr., is spearheading a class action lawsuit against Duolingo, Inc. (NasdaqGS: DUOL). It’s one...