Half-year report 2016: Improved result, cash flow and

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

News Desk 2018

Jul 22, 2016 at 2:45 AM

Half-year report 2016: Improved result, cash flow and financial position

The quarter · Sales were SEK 14,471 (15,303) million · Operating profit before depreciation/amortization was SEK 1,509 (1,236) million and excluding items affecting comparability was SEK 1,585 (1,246) million · Operating profit was SEK 592 (292) million and excluding items affecting comparability was SEK 668 (301) million · Profit after financial items was SEK 349 (79) million and excluding items affecting comparability was SEK 425 (88) million · Earnings per share were SEK 0.53 (0.22) · Operating cash flow was SEK 1,151 (1,462) million · The rights issue was oversubscribed and SSAB received proceeds of SEK 4,911 million in equity after transaction costs Comments by the CEO SSAB posted an operating profit, excluding items affecting comparability, of SEK 668 million for the second quarter of 2016, an improvement of SEK 858 million compared with the first quarter 2016. All divisions reported improved results, with SSAB Europe showing the strongest development between quarters. The improved result was driven primarily by higher volumes, higher prices and additional synergy capture. The operating cash flow was positive at SEK 1,151 million despite an increase in accounts receivable due to higher shipments and rising prices. Shipments during the second quarter increased compared to prior quarter and were also at a higher level than a year ago. This was mostly due to lower steel imports to Europe and to increased purchases by Steel Service Centers in North America, with no fundamental change in underlying demand. At the beginning of the quarter, steel prices rose sharply in China. This, coupled with ongoing trade cases in the EU and USA, has lowered imports from China. Steel prices have gradually risen both in Europe and in North America, however from a very low level. During the third quarter, we expect stable underlying demand, although reflecting the normal seasonal slowdown. Integration of the acquisition of Rautaruukki has now been completed. During the second quarter, we realized synergies of SEK 475 million and the annual run rate at the end of the quarter was SEK 2 billion. The synergy program was completed at the end of the second quarter, with significantly more synergies realized than the SEK 1.0-1.35 billion we had originally communicated in January 2014 and one year earlier than originally planned. We are also well on the way to deliver on our total cost savings target, which is to have reduced the cost level by SEK 2.8 billion on an annual basis in 2017 compared to the cost level at the time of the acquisition of Rautaruukki. The target to reduce the workforce by 2,400 is also proceeding according to plan. The rights issue announced in April has now been successfully completed. Through the rights issue, SSAB has received proceeds of around SEK 5 billion and, in addition to this, the refinancing package we have in place will significantly reduce the amount of loans maturing during the next 3-5 years and extend the duration of our credit facilities. SSAB aims for a total reduction of SEK 10 billion in net debt by the end of 2017, through the rights issue, divestment of non-core assets and through cash flow generated from the operations. The completion of the rights issue and the refinancing package secures SSAB’s long-term possibilities to continue to develop our business to achieve our goal of industry leading profitability. A strongly improved financial position makes us well placed to take advantage of the opportunities in the market while driving profitable growth in our well-defined focus areas. Invitation to SSAB’s second quarter 2016 results briefing SSAB invites you to a presentation of the results for the second quarter to be held at 09.30am CEST on Friday July 22, 2016. The press conference will be held in English and webcast live on www.ssab.com. It is also possible to participate in the briefing via telephone. Venue and time of briefing: World Trade Center (WTC) Stockholm, Kungsbron 1, Conference room Manhattan, 09.30am CEST. Telephone numbers: + 46 8 505 564 74 (Sweden), + 44 203 364 5374 (UK), + 1 855 753 2230 (USA). Link to webcast: Go to webcast (http://edge.media-server.com/m/p/x8uwyoos) For further information, please contact Investor Relations: Liisa-Maija Seppänen, Investor Relations Manager, liisa-maija.seppanen@ssab.com, +358 20 593 9232 Media: Viktoria Karsberg, Head of Corporate Communications, viktoria.karsberg@ssab.com, +46 8 454 5734 This information is information that SSAB AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 7.30 am CEST on July 22, 2016. 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

Nielsen's $1.4B Notes to Fuel Bold DoubleVerify Buy

Reading Between the Financial Lines Nielsen's latest move throws a hefty $1.4 billion worth of senior secured notes into the market, aimed at scooping up DoubleVerify in a play that’s as daring as it is dicey. It's the kind of gamble you discuss with your coffee buddy, sipping something strong enough to wake the dead, and exactly the kind of deal that gets seasoned...

Victaulic's Top Honors for Supporting Reservists

Victaulic's latest accolade isn't just some badge to hang on the wall. This 5 STAR rating from Friendly Forces is a testament to a rock-solid commitment that goes way beyond lip service. It's about real backing for the Reservists who often juggle dual lives—combining military demands with civilian careers. Backing Reservists: Victaulic Steps Up Big When you look at how...

Total Wine CEO Pushes Congress for THC Regulation

Prohibition or Regulation? The Battle Over THC When it comes down to it, the old dance of prohibition versus regulation is heating up yet again. We're not talking about alcohol this time around but low-dose hemp-derived THC-infused beverages. The folks over at Total Wine & More, with CEO Ryan Ross leading the charge, are shouting from the rooftops for regulation. And,...

Align's Innovative Transporter Revolutionizes Engine Assembly

Align's Game-Changer in Engine Manufacturing Let's face it, the world of heavy-duty equipment isn't always filled with breakthroughs. But every once in a while, a game-changer rolls off the line, and that's what's happening with Align Production Systems. They've crafted a custom omnidirectional transporter that does more than just move bulky engine assemblies; it...

Travel Deal Tuesday Offers Major Savings Opportunities

Travel aficionados, pay attention! Hopper's Travel Deal Tuesday is back, and if there's any day to catch a break on your jet-setting costs, it's December 1st. Travel costs have been on a steep incline, with domestic airfares up a whopping 40% over the past year. This year marks the tenth anniversary of Travel Deal Tuesday, and Hopper is pulling out all the stops to save...

EASEL 360: Reinventing Comfort in Painting Tools

Artists, listen up—particularly those who are tired of the usual rigmarole that comes with traditional easels. There's a fresh tool coming down the pike, and it's set to make your painting experience a whole lot friendlier. Meet the EASEL 360, a patent-pending innovation birthed by two inventive folks from Streetsboro, Ohio. No longer will you have to contort yourself...

FIS Under Investigation: Legal Woes Hit Shareholders

When Forecasts Falter: A Reality Check for FIS Investors You ever get the feeling a company is just a bit too optimistic? Well, Fidelity National Information Services, Inc. (NYSE: FIS) might've been playing that game up until its recent fiscal hiccup. The mess started on November 4, 2026, when FIS decided to slash its fiscal 2026 adjusted EPS outlook. From a Wall Street...

Call for Biotech Shift: Scarcity Drives Urgency

The Cry for an Industrial Biotech Shift Alright, folks, here's the deal: James Michael Matthew is waving a red flag. He's saying it's time to overhaul our approach to industrial biotechnology. Why? Because we're up against some big-time raw material shortages. Matthew's call isn't just a whisper in the wind; it's a siren echoing through an industry teetering on the edge...

Peanuts and Diabetes: A Surprising Health Link

A Nutty Approach to Diabetes Prevention Who would've thought peanuts could pack such a punch against diabetes? Amid the usual suspects of healthy foods, it's these humble legumes that are making headlines. The Peanut Institute, backed by fresh research, is shining a spotlight on their potential role in preventing type 2 diabetes, a disease that's affecting roughly 40...

Honeywell Aerospace Faces Litigation Amid Stock Decline

The Tumbling Honeywell Aerospace Saga Some days, stocks have you feeling like a cat stranded in a tree, and right now, Honeywell Aerospace (NASDAQ:HONA) is very much that cat—with branches breaking beneath it. Investors have been tossed into the fray after the company’s stock nosedived over 23% following ominous earnings and legal revelations. It's a market story...