Q3 2024 SSAB AB Earnings Call Transcript
Key Points
- SSAB AB (SSAAF) is progressing well with its transformation plan, including the construction of new electric arc furnaces and the closure of older facilities, aiming for a more flexible and cost-effective production setup.
- The company is focusing on increasing its capacity for high-strength and premium steels, which have shown more stable prices and earnings compared to standardized steel products.
- SSAB AB (SSAAF) is committed to eliminating CO2 emissions from its operations, aligning with growing demand for environmentally friendly steel products.
- The company has maintained good pricing management in challenging market conditions, particularly in its special steels division, which has shown stable demand and profitability.
- SSAB AB (SSAAF) has received a grant of over EUR 100 million to support its decarbonization efforts, indicating strong external support for its sustainability initiatives.
- The European market remains weak, with a seasonal slowdown and lower apparent demand impacting SSAB AB (SSAAF)'s performance.
- The company faced significant maintenance costs in Q3, totaling SEK 950 million, which affected its financial results.
- SSAB AB (SSAAF) anticipates somewhat lower shipments in Europe and special steels in Q4, with lower prices expected in Europe and the Americas.
- The construction market continues to be weak, affecting the Ruukki Construction division, despite efforts to focus on the renovation segment.
- The company's financial performance was impacted by lower volumes and prices compared to the previous year, with a 17% reduction in revenue year-on-year.
Good morning and welcome to this presentation of the SSAB Q3 report. My name is Per Hillström, I'm the Head of Investor Relations at SSAB and presenting today. We have Martin Lindqvist, President and CEO; and also Leena Craelius, CFO. And if we have a look at the agenda, we can see that they will start.
We have the agenda on the screen as well. Martin thought as usual overview of the quarter and then Leena Craelius to have a deeper look at the financials and then Martin closes with without looking summary and then we will also open up for questions at the end. So by that, the floor is yours, Martin, please. Thank you
Thank you, Per. And yes, let's dive into it. If we start with the transformation, it's moving on according to plan in (inaudible). And this is a picture from yesterday, we have started now to erect the building for the electric furnace and that project is ongoing.
And as you know, we will build a new
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