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SSAB Interim / Quarterly Report 2024
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Interim / Quarterly Report
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INTERIM REPORT JANUARY - JUNE 2024
Growth in Automotive premium steel in a weak market
July 24, 2024
Report for Q2 and first half of 2024
The second quarter
- Revenue was SEK 28,282 (31,777) million
- Operating result was SEK 2,969 (4,963) million
- Earnings per share were SEK 2.43 (3.81)
- Net cash was SEK 14.1 (11.7) billion
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year |
| Revenue | 28,282 | 31,777 | 27,148 | 55,430 | 63,681 | 119,489 |
| EBITDA | 4,038 | 5,871 | 4,142 | 8,180 | 11,470 | 20,141 |
| Operating result | 2,969 | 4,963 | 3,157 | 6,126 | 9,696 | 16,467 |
| Result for the period | 2,418 | 3,926 | 2,573 | 4,992 | 7,627 | 13,038 |
| Earnings per share (SEK) | 2.43 | 3.81 | 2.57 | 5.00 | 7.40 | 12.67 |
| Operating cash flow | 3,214 | 6,281 | 1,923 | 5,137 | 9,416 | 21,524 |
| Net debt (+) / Net cash (-) | -14,085 | -11,707 | -18,195 | -14,085 | -11,707 | -18,206 |
| Net debt/equity ratio (%) | -21 | -17 | -25 | -21 | -17 | -27 |
| Return on capital employed, rolling 12 months (%) | 18 | -12 | 21 | 18 | -12 | 22 |
| Number of employees at end of period | 14,486 | 14,632 | 14,496 | 14,486 | 14,632 | 14,565 |
Comments by the CEO
SSAB's operating result for the second quarter of 2024 amounted to SEK 2,969 (4,963) million. The decrease compared to a year earlier was primarily due to lower US heavy plate prices. The market in Europe continued to be relatively weak, whereas the market for high-strength steel was more resilient. Compared to the first quarter, the operating result was somewhat lower, whereas operating cash flow increased by more than SEK 1 billion.
SSAB Special Steels had an operating result of SEK 1,659 (2,003) million and an operating margin of 21% (23%) during the quarter. SSAB Special Steels' unique offering provides added value for our customers and this in turn translates into more stable prices than for standard products. SSAB Americas' operating result for the second quarter decreased to SEK 1,204 (2,642) million and the operating margin was 19% (34%), as prices weakened. SSAB Europe had an operating result of SEK 400 (764) million and an operating margin of 3% (6%). The market was weak and the political strikes in Finland had a negative effect of around SEK 125 million, while shipments to the car industry (Automotive Advanced High Strength Steels) reached a record level, supported by SSAB's advanced products as well as our leading position in emission-free steels.
Safety performance continued to improve and LTIF decreased to 0.64 (1.01) during the quarter.
The market in Europe was relatively weak during the second quarter and the US heavy plate market weakened. During the third quarter, SSAB will carry out planned maintenance at most production sites and this will be reflected in lower output. SSAB Americas will bring forward the maintenance stop at the Montpelier mill. Demand is seasonally lower in the third quarter, especially in Europe, and the assessment is for a more pronounced decrease than normal. The market is challenging for Tibnor and Ruukki Construction but measures to reduce costs had a positive effect in the second quarter.
The transformation to fossil-free steelmaking continues with a focus on the conversion of Oxelösund and the planning of the state-of-the-art, highly-effective mini-mill in Luleå. The new mill in Luleå will reduce Sweden's carbon dioxide emissions by 7% in addition to the 3% reduction from the conversion of the mill in Oxelösund. SSAB's updated targets to reduce greenhouse gas emissions were approved by the Science Based Targets initiative (SBTi) during the second quarter. Approval means that the targets are scientifically based and in line with the SBTi's raised requirements for companies to deliver on the goal of limiting global warming to 1.5°C.
In conjunction with the above, SSAB launched a new combined Green and Sustainability-Linked Finance Framework that will support SSAB's transformation to fossil-free steelmaking and investments in more
efficient and flexible production systems. The combined framework provides SSAB with an opportunity to issue both green and sustainability-linked financing instruments as well as a combination of the two.
Outlook for the third quarter of 2024
The seasonal downturn during the third quarter is assessed to be more pronounced than normal and will especially impact SSAB Special Steels and SSAB Europe. Most of SSAB's production sites will carry out planned maintenance during the third quarter, thereby adjusting production and shipments to lower demand. SSAB Americas will start maintenance work earlier in the third quarter than previously planned.
Compared with the second quarter of 2024, SSAB Special Steels' shipments are assessed to be lower during the third quarter, whereas prices are expected to be somewhat lower.
SSAB Europe's shipments are assessed to be lower and also prices are expected to be lower during the third quarter of 2024 compared to the second quarter.
SSAB Americas' shipments are assessed to be significantly lower and prices are expected to be lower.
The costs of raw materials are expected to be somewhat lower compared to the prior quarter.
Outlook for the steel divisions
| Q3 2024 vs. Q2 2024 | ||
|---|---|---|
| Shipments | Realized prices | |
| SSAB Special Steels | Lower | Somewhat lower |
| SSAB Europe | Lower | Lower |
| SSAB Americas | Significantly lower | Lower |
Definitions: Significantly lower (>10 %), Lower (5-10 %), Somewhat lower (0-5 %), Stable (~0 %), Somewhat higher (0-5 %), Higher (5-10 %), Significantly higher (>10 %)
SSAB Group – Second quarter of 2024
The market during the second quarter
Demand for high-strength steel was somewhat lower compared with the previous quarter, and in particular the market in Europe weakened during the end of the second quarter.
Demand for standard steel in Europe was weak during the quarter in most segments except for the vehicle industry, where demand continued to be at a good level.
Market prices for strip in Europe were low and weakened further during the end of the second quarter. Heavy plate prices decreased somewhat during the quarter. Distributors have continued to adopt a cautious approach and import volumes were relatively high during the quarter, while a minor part of capacity in Europe was idled. Inventory levels in the market are estimated to be normal.
In North America, demand for heavy plate was lower and market prices saw a negative trend throughout the second quarter. Inventory levels at North American distributors were still low, but distributors were generally cautious against a backdrop of falling market prices.
Market prices in China for strip and heavy plate were somewhat lower at the end of the second quarter compared to end of the first quarter.
Revenue and operating result
Revenue for the second quarter of 2024 was SEK 28,282 (31,777) million, down 11% compared to the same period in 2023, mainly related to lower prices and lower shipments. Compared with the first quarter of 2024, revenue was up 4%.
Operating result was SEK 2,969 (4,963) million. The decrease compared to 2023 was primarily explained by lower margins on the North American plate market. Compared to the first quarter of 2024, operating result was marginally down by SEK 189 million.
Revenue and operating result by business segment
| Revenue | Operating result | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||||
| SEK millions | Q2 | Q2 | Change | Q2 | Q2 | Change | |
| SSAB Special Steels | 7,847 | 8,646 | -799 | 1,659 | 2,003 | -344 | |
| SSAB Europe | 11,641 | 12,953 | -1,312 | 400 | 764 | -363 | |
| SSAB Americas | 6,221 | 7,728 | -1,507 | 1,204 | 2,642 | -1,438 | |
| Tibnor | 3,344 | 3,600 | -256 | 57 | -50 | 107 | |
| Ruukki Construction | 1,472 | 1,559 | -87 | 42 | 10 | 32 | |
| Other | — | — | — | -394 | -405 | 12 | |
| Group adjustments | -2,244 | -2,709 | 466 | — | — | — | |
| Total | 28,282 | 31,777 | -3,495 | 2,969 | 4,963 | -1,995 |
Analysis of total change in revenue and operating result compared to prior periods
| Revenue | Operating result | ||||
|---|---|---|---|---|---|
| % change | Vs. Q2 2023 | Vs. Q1 2024 | SEK millions | Change vs. Q2 2023 |
Change vs. Q1 2024 |
| Price | -8 | -2 | Price and product mix | -2,645 | 115 |
| Product mix | 0 | 0 | Volume | -365 | 380 |
| Volume | -4 | 4 | Variable costs | 1,245 | -190 |
| Currency effects | 0 | 2 | Fixed costs | -125 | -615 |
| Other sales | 1 | 0 | Capacity utilization | -180 | 90 |
| Currency effects | 74 | 31 | |||
| Total | -11 | 4 | Total | -1,995 | -189 |
Leading sustainability performance
SSAB's objective is to become the world's safest steel company and to achieve zero accidents and workrelated injuries and illnesses. The lost time injury frequency per million hours worked (LTIF) improved to 0.64 (1.01). Total recordable injury frequency (TRIF) was 6.1 (6.9).
Energy intensity and CO2e intensity in production were relatively stable compared to the figures for the second quarter of 2023.
Key sustainability figures – rolling 12 months
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Q2 | Q2 | Q1 | Full-year | |
| Safety | ||||
| Lost time injury frequency (LTIF)1) | 0.64 | 1.01 | 0.81 | 0.87 |
| Total number of injuries (LTI)2) | 18 | 29 | 23 | 25 |
| Total recordable injury frequency (TRIF)3) | 6.1 | 6.9 | 6.0 | 6.2 |
| Environment | ||||
| Energy consumption, GWh4) | 9,136 | 9,127 | 9,159 | 9,165 |
| Energy intensity, kWh/tonnes crude steel | 1,216 | 1,187 | 1,193 | 1,178 |
| CO2e-emissions (Scope 1), thousand tonnes | 9,810 | 9,930 | 9,949 | 10,007 |
| Indirect CO2e-emissions (Scope 2), thousand tonnes | 1,177 | 1,126 | 1,132 | 1,087 |
| CO2e-intensity, tonnes of CO2e/tonnes crude steel5) | 1.46 | 1.44 | 1.44 | 1.43 |
1) Lost Time Injury Frequency, number of accidents resulting in an absence of more than one day per million working hours, own employees and contractors.
2) Lost Time Injuries, number of accidents resulting in an absence of more than one day, own employees and contractors.
3) Total Recordable Injury Frequency, number of lost time injuries, medical treatment injuries and restricted work injuries per million hours worked, own employees and contractors, except for medical treatment injuries and restricted work injuries for contractors in the US.
4) Total energy consumption (electricity, purchased fuels and purchased heat).
5) Includes Scope 1 and Scope 2.
Transformation to fossil-free steel
SSAB continues investments in converting the steel mill in Oxelösund to fossil-free steelmaking and a start on construction of the new electric arc furnace was made in 2023. At the end of January 2024, the ruling on the granted concession for the power lines to Oxelösund gained legal force and the project continues according to plan.
There is strong demand for steel without carbon dioxide footprint and SSAB has entered into a large number of partnerships with major customers. During 2023, SSAB launched a completely new scrap-based steel, SSAB Zero, with 0.0 kg emissions of carbon dioxide equivalents (Scope 1 and 2) per kg of steel – the world's first commercial product of its kind. The increase in SSAB Zero production continues and around 40,000 tonnes were produced during the second quarter.
During the first quarter, SSAB launched the world's first emission-free steel powder for commercial deliveries, made of recycled SSAB Zero steel. The product will create opportunities for customers to 3D-print their unique designs in steel produced without fossil carbon dioxide emissions. The powder combines the properties of SSAB's high-strength steel with the light structural possibilities of 3D-printing.
In early April, SSAB took the decision to build a state-of-the art, highly-efficient mini-mill in Luleå, Sweden. The new mill will have a capacity of 2.5 million tonnes a year with two electric arc furnaces, advanced ladle metallurgy and an integrated rolling mill. The investment also includes a cold rolling and galvanizing complex to supply the vehicle industry with a broader offering of premium products.
The investment in Luleå is estimated to be EUR 4.5 billion including contingency. This will avoid replacement investments of around EUR 2 billion that would otherwise be needed until 2035 to maintain the current blast furnace, steel mill and coking plant in Luleå as well as the rolling mill in Borlänge. The value creation will be significant. Compared to the alternative of continuing to invest in the current system, the annual EBITDA improvement is estimated to be more than SEK 5 billion at current commodity forecasts.
The transformation of Luleå will reduce Sweden's carbon dioxide emissions by 7% in addition to the 3% reduction from the conversion of the mill in Oxelösund.
Following the investment decision, as of April 2024 SSAB has revised the remaining useful life estimates of the assets that will be replaced and become obsolete by the new production system so that these assets will be fully depreciated by the end of 2028. The change in useful lives will increase SSAB's annual depreciation by approximately SEK 300 million.
SSAB's updated targets to reduce greenhouse gas emissions were approved by the Science Based Targets initiative (SBTi) during the second quarter. Approval means that the targets are scientifically based and in line with the SBTi's raised requirements for companies to deliver on the goal of limiting global warming to 1.5°C. In conjunction with the above, SSAB launched a new combined Green and Sustainability-Linked Finance Framework.
Major planned maintenance outages 2024
The Group's total maintenance costs for the full-year 2024 are expected to be SEK 1,555 (1,480) million, unchanged since the previous estimate. SSAB Americas will start maintenance work earlier in the third quarter than previously planned. The table below shows the expected costs for 2024 and the actual costs during 2023. The figures include the impact of the direct maintenance cost and the cost of lower capacity utilization, but exclude lost margins.
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK millions | Q1 | Q1 | Q2 | Q2 | Q3 | Q3 | Q4 | Q4 | Full-year | Full-year |
| SSAB Special Steels | 0 | 0 | 0 | 0 | 100 | 75 | 320 | 550 | 420 | 625 |
| SSAB Europe | 0 | 0 | 0 | 0 | 375 | 325 | 240 | 210 | 615 | 535 |
| SSAB Americas | 0 | 0 | 0 | 0 | 470 | 0 | 50 | 320 | 520 | 320 |
| Total | 0 | 0 | 0 | 0 | 945 | 400 | 610 | 1,080 | 1,555 | 1,480 |
Expected maintenance costs for 2024
Raw materials
SSAB sources iron ore primarily from LKAB in Sweden at market index-linked prices. Coking coal is sourced from Australia, the USA and Canada, usually on annual supply contracts with monthly prices. SSAB's mills in the USA use recycled steel material and source scrap metal on the spot market.
The table below shows the fluctuations in SSAB's purchase prices. Lead times and payment terms for iron ore have a combined effect which impacts the result around one quarter later than the change in market price, while coking coal has a lead time of around one and a half quarters. Scrap purchase prices have a lead time of around one month.
Change in SSAB's average purchase prices compared to prior periods
| Q2 2023 | Q1 2024 | |||
|---|---|---|---|---|
| % change | USD | SEK | USD | SEK |
| Iron ore | -10 % | -9 % | -12 % | -10 % |
| Coking coal | -14 % | -14 % | -13 % | -11 % |
| Scrap metal | -11 % | -10 % | -11 % | -9 % |
Production and shipments
SSAB's production and shipments were lower than those of the second quarter of last year, due to lower demand and the political strikes in Finland. Plate production and shipments were somewhat higher compared to the previous quarter. This was due to seasonally better demand and because the strikes in Finland had a greater impact on the first quarter.
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Thousand tonnes | Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year |
| Crude steel production | 1,927 | 2,090 | 1,941 | 3,868 | 4,135 | 7,778 |
| Rolling production | 1,839 | 1,898 | 1,673 | 3,512 | 3,797 | 7,122 |
| Steel shipments | 1,646 | 1,722 | 1,583 | 3,229 | 3,459 | 6,460 |
Result for the period and earnings per share
The result for the period attributable to shareholders in the parent company was SEK 2,419 (3,923) million for the second quarter of 2024, equating to SEK 2.43 (3.81) per share. Income taxes were SEK -658 (-1,093) million.
Cash flow
Operating cash flow for the second quarter of 2024 amounted to SEK 3,214 (6,281) million. The decrease compared to last year was due to a lower result as well as more working capital tied up and higher capital expenditure. Net cash flow, after dividends of SEK 4,983 (8,960) million, amounted to SEK -3,584 (-4,526) million. Net cash amounted to SEK 14,085 (11,707) million at June 30, 2024.
Capital expenditure
Capital expenditure amounted to SEK 1,250 (798) million during the second quarter of 2024. Strategic investments were SEK 616 (325) million. The strategic investments primarily relate to Oxelösund for conversion to fossil-free steelmaking. The estimate for total maintenance and strategic expenditure for the full-year 2024 amounts to SEK 6.3 billion. The previous estimate was SEK 5.5 billion. The increase is related to the decision to transform Luleå to fossil-free steelmaking. The sum of maintenance and strategic expenditure in 2023 was SEK 4.5 billion.
Operating cash flow and net debt
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| EBITDA | 4,038 | 5,871 | 8,180 | 11,470 | 20,141 |
| Change in working capital | -145 | 1,094 | -1,623 | -524 | 4,836 |
| Maintenance capital expenditures | -635 | -473 | -1,155 | -840 | -2,585 |
| Other | -45 | -211 | -266 | -691 | -867 |
| Operating cash flow | 3,214 | 6,281 | 5,137 | 9,416 | 21,524 |
| Financial items | 86 | 91 | 205 | 194 | 437 |
| Income taxes | -1,246 | -1,672 | -2,282 | -2,426 | -3,879 |
| Cash flow from current operations | 2,054 | 4,699 | 3,059 | 7,184 | 18,082 |
| Strategic expenditures in plants and machinery | -616 | -325 | -1,124 | -621 | -1,889 |
| Acquisitions of shares and operations | — | 0 | — | -24 | -52 |
| Investments/contributions in affiliated companies and joint ventures |
— | — | — | — | -20 |
| Divestments of shares and operations | — | 61 | — | 61 | 61 |
| Cash flow before dividend | 1,439 | 4,435 | 1,936 | 6,600 | 16,182 |
| Dividend, parent company's shareholders | -4,983 | -8,960 | -4,983 | -8,960 | -8,960 |
| Dividend, non-controlling interest | -1 | -2 | -1 | -2 | -8 |
| Purchases of own shares | — | — | -1,215 | — | -1,292 |
| Acquisition of shares, non-controlling interest | -38 | — | -38 | — | — |
| Net cash flow | -3,584 | -4,526 | -4,301 | -2,361 | 5,922 |
| Net cash (+) / Net debt (-) at beginning of period | 18,195 | 15,590 | 18,206 | 14,287 | 14,287 |
| Net cash flow | -3,584 | -4,526 | -4,301 | -2,361 | 5,922 |
| Other 1) | -527 | 642 | 180 | -219 | -2,003 |
| Net cash (+) / Net debt (-) at the end of period | 14,085 | 11,707 | 14,085 | 11,707 | 18,206 |
1) Mainly valuation changes of derivatives and revaluations of other financial assets and liabilities in foreign currencies
SSAB Group – first half of 2024
Revenue and operating result
Revenue for the first half of 2024 was SEK 55,430 (63,681) million, down 13% compared to the first half of 2023, mainly related to lower prices in SSAB Europe and SSAB Americas.
Operating result was SEK 6,126 (9,696) million, down SEK 3,570 million compared to the first half of 2023. The lower earnings was mainly related to prices for SSAB Americas decreasing from a high level.
Revenue and adjusted operating result by business segment
| Revenue | Operating result | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||||
| SEK millions | Jan-Jun | Jan-Jun | Change | Jan-Jun | Jan-Jun | Change | |
| SSAB Special Steels | 15,563 | 17,219 | -1,656 | 3,441 | 4,097 | -656 | |
| SSAB Europe | 22,458 | 25,246 | -2,788 | 564 | 763 | -200 | |
| SSAB Americas | 12,478 | 15,443 | -2,965 | 2,616 | 5,317 | -2,702 | |
| Tibnor | 6,457 | 7,648 | -1,191 | 94 | -48 | 142 | |
| Ruukki Construction | 2,487 | 2,888 | -400 | -36 | 1 | -37 | |
| Other | — | — | — | -551 | -434 | -117 | |
| Group adjustments | -4,013 | -4,763 | 750 | — | — | — | |
| Total | 55,430 | 63,681 | -8,251 | 6,126 | 9,696 | -3,570 |
Result for the period and earnings per share
The result for the period attributable to shareholders in the parent company for the first half of 2024 was SEK 4,992 (7,622) million, equating to SEK 5.00 (7.40) per share. Income taxes were SEK -1,403 (-2,179) million.
Cash flow, financing and liquidity
Operating cash flow for the first half of 2024 decreased to SEK 5,137 (9,416) million, which was primarily due to the lower result. Net cash flow, after dividends of SEK 4,983 (8,960) million and purchases of own shares of SEK 1,215 (—) million, amounted to SEK -4,301 (-2,361) million.
Net cash at June 30, 2024 was SEK 14,085 (11,707) million. Cash and cash equivalents were SEK 23,892 (24,517) million and non-utilized credit facilities were SEK 8,429 (8,750) million, which combined corresponds to 29% (27%) of rolling 12-month revenue. The term to maturity of the total loan portfolio at June 30, 2024 averaged 6.9 (5.6) years, with an average fixed interest period of 1.3 (1.3) years.
Equity
With a result for the period of SEK 4,992 (7,622) million and other comprehensive income (mostly consisting of translation differences) of SEK 1,602 (1,902) million attributable to the owners of the parent company, the shareholders' equity attributable to the owners of the parent company amounted to SEK 68,304 (67,689) million, equating to SEK 68.54 (65.73) per share.
Share buyback program and cancellation of shares
Following the completion of the share buyback program during the first quarter of 2024, SSAB's total number of shares is 996,617,667, of which 295,966,330 are Class A shares and 700,651,337 Class B shares, and total number of votes is 366,031,463.7 of which Class A shares convey 295,966,330 votes and Class B shares 70,065,133.7 votes. The decrease in the number of shares is due to SSAB's cancellation of 33,217,659 shares (of which 8,216,940 are Class A shares and 25,000,719 are Class B shares) in accordance with the resolution of the annual general meeting on April 24, 2024. Following this cancellation, SSAB holds no treasury shares.
The share capital of SEK 9,062,550,868.80 remained unchanged since, at the same time as the resolution to reduce the share capital by canceling the shares held by the company, it was resolved to increase the share capital by a transfer from non-restricted shareholders' equity to share capital (bonus issue). This was done without issuing any new shares, consequently restoring the share capital to the same level prior to the cancellation of shares.
Business segments – Second quarter of 2024
SSAB Special Steels
Second quarter in brief
- Weaker demand
- Shipments decreased 7% to 337 (364) thousand tonnes
- Operating result was SEK 1,659 (2,003) million
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year | |
| Revenue (SEK millions) | 7,847 | 8,646 | 7,716 | 15,563 | 17,219 | 32,145 |
| EBITDA (SEK millions) | 2,023 | 2,305 | 2,143 | 4,167 | 4,685 | 8,010 |
| Operating result (SEK millions) | 1,659 | 2,003 | 1,781 | 3,441 | 4,097 | 6,752 |
| Operating cash flow (SEK millions) | 1,242 | 1,727 | 1,329 | 2,571 | 3,667 | 7,755 |
| Crude steel production (thousand tonnes) | 576 | 651 | 586 | 1,162 | 1,259 | 2,252 |
| Rolling production (thousand tonnes) | 421 | 447 | 419 | 840 | 901 | 1,620 |
| Steel shipments (thousand tonnes) | 337 | 364 | 327 | 664 | 712 | 1,304 |
| Number of employees at end of period | 4,015 | 4,012 | 4,017 | 4,015 | 4,012 | 4,056 |
Market trend
Demand in the customer segment related to the construction industry continued to be weak, especially in Europe. In North America, some caution was seen at the end of the quarter due to the presidential election in the autumn. The emerging markets were more stable in, for example, the Material Handling customer segment, which comprises mining and recycling.
Development compared to Q2/23
Compared with a year earlier, demand was somewhat weaker, which was reflected in production and shipments. Revenue was down 9% compared to the second quarter of 2023 and amounted to SEK 7,847 (8,646) million. Lower shipments had a negative impact of 7 percentage points and lower prices 3 percentage points.
Operating result was SEK 1,659 (2,003) million. Lower prices and lower shipments were partly compensated by lower variable costs, primarily of raw material.
Operating cash flow during the second quarter was SEK 1,242 (1,727) million. The lower cash flow was primarily due to the lower result and increased working capital.
Capital expenditure during the second quarter was SEK 690 (327) million, of which SEK 503 (186) million were strategic investments in Oxelösund.
Development compared to Q1/24
Production and shipments were stable. Revenue increased by 2% and higher shipments had an impact of 3 percentage points. Currency effects had a positive impact of 2 percentage points, whereas lower prices reduced revenue by 2 percentage points.
Operating result decreased somewhat by SEK 122 million. Higher shipments were counteracted by somewhat higher costs.
SSAB Europe
Second quarter in brief
- Weak market
- Shipments down by 4%, but better product mix through growth in Automotive AHSS
- Operating result decreased to SEK 400 (764) million
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year | |
| Revenue (SEK millions) | 11,641 | 12,953 | 10,817 | 22,458 | 25,246 | 46,227 |
| EBITDA (SEK millions) | 915 | 1,196 | 600 | 1,516 | 1,614 | 2,906 |
| Operating result (SEK millions) | 400 | 764 | 163 | 564 | 763 | 1,183 |
| Operating cash flow (SEK millions) | 1,063 | 2,837 | 41 | 1,104 | 1,490 | 3,906 |
| Crude steel production (thousand tonnes) | 1,063 | 1,142 | 1,077 | 2,140 | 2,284 | 4,367 |
| Rolling production (thousand tonnes) | 1,152 | 1,186 | 973 | 2,126 | 2,343 | 4,402 |
| Steel shipments (thousand tonnes) | 870 | 907 | 818 | 1,688 | 1,819 | 3,354 |
| Number of employees at end of period | 6,779 | 6,808 | 6,786 | 6,779 | 6,808 | 6,802 |
Production figures include high-strength steel made for SSAB Special Steels. These volumes are not included in SSAB Europe's shipments.
Market trend
Demand was cautious during the second quarter, especially in segments like Steel Service Centers and Construction. SSAB continued to make progress in high-strength steels (AHSS) to the Automotive segment, partly due to the leading position in emission-free steels, and the market was at a relatively good level. Demand in Heavy Transport weakened further, especially in heavy-duty trucks.
SSAB Europe's production and shipments were affected by political strikes in Finland, which had a total negative impact of around SEK 125 million on the second quarter operating result.
Development compared to Q2/23
Production and shipments were lower compared with the same quarter last year, mainly due to a worse market. Revenue was down 10% and amounted to SEK 11,641 (12,953) million, lower prices had an impact of 6 percentage points. Lower shipments reduced revenue by 4 percentage points, with the strike having a negative impact of some 20 thousand tonnes.
Operating result decreased to SEK 400 (764) million, down SEK 363 million compared with the same quarter in 2023. Lower prices, lower shipments and lower capacity utilization had a negative impact, which was partly offset by lower variable costs, primarily for raw materials. A better product mix driven by good development in Automotive AHSS had a positive effect.
Operating cash flow decreased to SEK 1,063 (2,837) million, mainly related to less release of working capital and a lower result.
Capital expenditure during the second quarter was SEK 397 (328) million, of which SEK 46 (85) million were strategic investments.
Development compared to Q1/24
Plate production increased compared to the prior quarter, which to a larger extent was impacted by the political strike in Finland. Revenue increased by 8%. Higher shipments had a positive impact of 6 percentage points and somewhat higher prices contributed by 1 percentage point.
Compared to the first quarter of 2024, operating result increased by SEK 237 million, which was largely due to a better product mix, higher shipments and better capacity utilization. The political strike had a negative effect of SEK 350 million in the first quarter and SEK 125 million in the second quarter.
SSAB Americas
Second quarter in brief
- Weaker market
- Shipments decreased by 3% to 439 (451) thousand tonnes
- Operating result was SEK 1,204 (2,642) million
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year | |
| Revenue (SEK millions) | 6,221 | 7,728 | 6,256 | 12,478 | 15,443 | 29,775 |
| EBITDA (SEK millions) | 1,272 | 2,697 | 1,473 | 2,745 | 5,425 | 9,874 |
| Operating result (SEK millions) | 1,204 | 2,642 | 1,412 | 2,616 | 5,317 | 9,651 |
| Operating cash flow (SEK millions) | 1,562 | 1,970 | 931 | 2,493 | 4,554 | 9,509 |
| Crude steel production (thousand tonnes) | 289 | 297 | 278 | 566 | 592 | 1,159 |
| Rolling production (thousand tonnes) | 265 | 265 | 281 | 546 | 553 | 1,100 |
| Steel shipments (thousand tonnes) | 439 | 451 | 437 | 876 | 927 | 1,803 |
| Number of employees at end of period | 699 | 690 | 695 | 699 | 690 | 691 |
Crude steel production and rolling production refer to Montpelier. Shipments also include standard steel volumes from SSAB Special Steels (Mobile).
Market trend
A more cautious market, due among other things to the presidential election in the autumn, impacted shipments during the second quarter. This was noted by among others Steel Service Centers and in the Construction Machinery customer segment. Activity continued to be good in Energy.
Development compared to Q2/23
Production and shipments were somewhat lower during the second quarter. Revenue was down 20% and amounted to SEK 6,221 (7,728) million. Lower prices had a negative impact of 18 percentage points and lower shipments 3 percentage points.
Operating result for the second quarter of 2024 decreased to SEK 1,204 (2,642) million, primarily due to significantly lower prices.
Operating cash flow during the second quarter of 2024 was SEK 1,562 (1,970) million. The decrease was primarily due to the lower result, partly compensated by release of working capital.
Capital expenditure during the second quarter was SEK 55 (57) million, of which SEK 4 (10) million were strategic investments.
Development compared to Q1/24
Production and shipments were stable compared to the first quarter of 2024 and revenue was marginally lower by 1%. Lower prices had a negative impact of 7 percentage points. Currency effects had a positive impact of 3 percentage points. In addition, shipments and product mix had a somewhat positive impact.
Compared to the first quarter of 2024, operating result was down by SEK 208 million. The decrease was due to lower prices, which were partly offset by lower raw material costs, primarily for scrap.
Tibnor
Second quarter in brief
- Shipments rose by 5%, supported by larger project orders
- Revenue was 7% lower than last year
- Operating result improved to SEK 57 (-50) million, primarily because of lower inventory losses
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year | |
| Revenue (SEK millions) | 3,344 | 3,600 | 3,112 | 6,457 | 7,648 | 13,691 |
| EBITDA (SEK millions) | 110 | 2 | 89 | 199 | 52 | -13 |
| Operating result (SEK millions) | 57 | -50 | 36 | 94 | -48 | -220 |
| Operating cash flow (SEK millions) | -110 | 114 | 287 | 178 | 475 | 1,025 |
| Shipments (thousand tonnes) | 217 | 206 | 197 | 414 | 448 | 820 |
| Number of employees at end of period | 1,056 | 1,102 | 1,058 | 1,056 | 1,102 | 1,059 |
Market trend
The market was weak during the second quarter. The sharpest fall was seen in the construction-related customer segments.
Development compared to Q2/23
Tibnor has implemented cost saving measures of SEK 150 million on an annual basis, of which around SEK 100 million are structural.
Revenue decreased 7% compared with the second quarter of 2023 and amounted to SEK 3,344 (3,600) million. Lower prices and a weaker product mix had a combined negative effect of 12 percentage points. Higher shipments impacted by 5 percentage points, supported by a number of larger project orders.
Operating result for the second quarter of 2024 was up SEK 107 million compared with the same period in 2023 and amounted to SEK 57 (-50) million. The improvement was mainly due to lower inventory losses but measures to reduce costs also had a positive impact, which was counteracted by lower prices.
Operating cash flow during the second quarter of 2024 was SEK -110 (114) million. The improved result had a positive impact, which was counteracted by increased working capital.
Capital expenditure during the second quarter was SEK 34 (37) million, of which SEK 10 (14) million were strategic investments.
Development compared to Q1/24
Revenue was up 7% compared with the first quarter of 2024 due to higher shipments.
Operating result increased by SEK 21 million compared with the first quarter of 2024. The improvement was primarily due to higher shipments.
Ruukki Construction
Second quarter in brief
- Weak demand but positive seasonal impact compared to Q1 2024
- Operating result increased to SEK 42 (10) million, supported by cost savings
Key figures
| 2024 | 2023 | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| Q2 | Q2 | Q1 | Jan-Jun | Jan-Jun | Full-year | |
| Revenue (SEK millions) | 1,472 | 1,559 | 1,015 | 2,487 | 2,888 | 5,810 |
| EBITDA (SEK millions) | 99 | 63 | -18 | 81 | 104 | 201 |
| Operating result (SEK millions) | 42 | 10 | -78 | -36 | 1 | -6 |
| Operating cash flow (SEK millions) | -15 | -4 | -197 | -212 | 32 | 412 |
| Number of employees at end of period | 1,362 | 1,485 | 1,385 | 1,362 | 1,485 | 1,410 |
Market trend
The activity level on Ruukki Construction's markets is low, especially the start of new residential construction is very weak in Sweden and Finland. Compared to the first quarter, there was a seasonal improvement.
Development compared to Q2/23
Ruukki Construction has implemented cost savings and due to the weak market, further measures may be considered.
Revenue decreased by 6% and amounted to SEK 1,472 (1,559) million. Operating result increased by SEK 32 million to SEK 42 (10) million, due to cost savings.
Operating cash flow during the second quarter decreased to SEK -15 (-4) million, related to increased working capital. Capital expenditure during the second quarter was SEK 68 (45) million, of which SEK 52 (31) million were strategic investments.
Development compared to Q1/24
Compared to the first quarter of 2024, revenue was up 45% and operating result was up SEK 120 million, primarily due to a seasonally stronger market for Roofing, but also Building Envelopes increased.
Risks and uncertainty factors
For information regarding material risks and uncertainty factors, reference is made to the detailed description in the Annual Report 2023.
Annual general meeting and dividend
The annual general meeting was held on April 24, 2024 in Stockholm, Sweden. The annual general meeting resolved on a dividend of SEK 5.00 per share for the financial year 2023, totaling around SEK 5 billion, which was paid on May 2. The annual general meeting resolved to decrease the share capital by canceling the own shares held by the company and to increase the share capital with a bonus issue without issuing new shares to keep the amount of share capital unchanged. The annual general meeting authorized the Board of Directors to, on one or several occasions up to the next AGM, resolve on acquisitions of own shares of series A and/or B on Nasdaq Stockholm and/or Nasdaq Helsinki.
Affirmation
The Board of Directors and the President and CEO affirm that this interim report provides a fair and true view of the operations, financial position and earnings of the parent company and the Group, and describes the material risks and uncertainties facing the parent company and the Group.
Stockholm, July 24, 2024
Chair Director Director
Lennart Evrell Petra Einarsson Kerstin Enochsson
Bernard Fontana Marie Grönborg Pierre Heeroma Director Director Director
Mikael Henriksson Tomas Jansson Tomas Karlsson Director Director Director
Mikael Mäkinen Maija Strandberg Martin Lindqvist
Director Director President and CEO
Financial reports – The Group
The figures in the tables have been rounded, which might affect aggregates
Consolidated statement of profit and loss
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Revenue | 28,282 | 31,777 | 55,430 | 63,681 | 119,489 |
| Cost of goods sold | -23,584 | -25,262 | -45,980 | -51,015 | -96,936 |
| Gross profit | 4,698 | 6,515 | 9,450 | 12,666 | 22,553 |
| Selling and administrative costs | -1,645 | -1,556 | -3,123 | -3,017 | -6,048 |
| Other operating income and expenses | -85 | 19 | -187 | 60 | -8 |
| Affiliated companies, profit/loss after tax | 0 | -14 | -14 | -12 | -29 |
| Operating result | 2,969 | 4,963 | 6,126 | 9,696 | 16,467 |
| Financial items | 108 | 56 | 269 | 110 | 248 |
| Result before tax | 3,076 | 5,019 | 6,395 | 9,806 | 16,716 |
| Income tax | -658 | -1,093 | -1,403 | -2,179 | -3,677 |
| Result for the period | 2,418 | 3,926 | 4,992 | 7,627 | 13,038 |
| Of which attributable to: | |||||
| - Parent company's shareholders | 2,419 | 3,923 | 4,992 | 7,622 | 13,029 |
| - Non-controlling interest | -1 | 3 | 0 | 5 | 9 |
Consolidated statement of comprehensive income
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Result for the period | 2,418 | 3,926 | 4,992 | 7,627 | 13,038 |
| Other comprehensive income | |||||
| Items that may be subsequently reclassified to the profit or loss | |||||
| Translation differences for the period | -556 | 2,422 | 1,716 | 2,587 | -1,454 |
| Translation differences due to hyperinflation after tax | 19 | 0 | 45 | -2 | 80 |
| Cash flow hedges | 82 | -166 | -185 | -927 | -1,072 |
| Income tax on cash flow hedges | -16 | 34 | 37 | 186 | 215 |
| Net investment hedges in foreign operations | — | — | — | — | 267 |
| Income tax on net investment hedges in foreign operations | — | — | — | — | -55 |
| Total items that may be subsequently reclassified to the profit | |||||
| or loss | -471 | 2,291 | 1,614 | 1,845 | -2,019 |
| Items that will not be reclassified to the profit or loss | |||||
| Net defined benefit liability re-measurement | 4 | 23 | -13 | 74 | 50 |
| Income tax on net defined benefit liability re-measurement | -1 | -5 | 3 | -15 | -10 |
| Total items that will not be reclassified to the profit or loss | 3 | 18 | -10 | 59 | 40 |
| Total other comprehensive income for the period | -468 | 2,310 | 1,604 | 1,904 | -1,978 |
| Total comprehensive income for the period | 1,950 | 6,237 | 6,595 | 9,532 | 11,060 |
| Of which attributable to: | |||||
| - Parent company's shareholders | 1,951 | 6,232 | 6,594 | 9,525 | 11,053 |
| - Non-controlling interest | -1 | 5 | 1 | 7 | 7 |
Consolidated statement of financial position
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK millions | Jun 30 | Jun 30 | Dec 31 |
| Assets | |||
| Intangible assets | 1,511 | 1,547 | 1,496 |
| Tangible fixed assets | 28,728 | 26,935 | 27,341 |
| Right-of-use assets | 2,962 | 3,092 | 2,701 |
| Investments in affiliated companies and joint ventures | 956 | 997 | 959 |
| Deferred tax receivables | 556 | 543 | 548 |
| Non-current financial assets | 508 | 855 | 503 |
| Total non-current assets | 35,221 | 33,970 | 33,548 |
| Inventories | 32,341 | 36,620 | 32,485 |
| Accounts receivable | 12,509 | 14,730 | 10,673 |
| Current tax receivables | 1,430 | 995 | 733 |
| Other current receivables | 2,022 | 1,813 | 1,485 |
| Cash and cash equivalents | 23,892 | 24,517 | 28,916 |
| Total current assets | 72,195 | 78,676 | 74,291 |
| Total assets | 107,416 | 112,646 | 107,839 |
| Equity and liabilities | |||
| Equity for the shareholders in the parent company | 68,304 | 67,689 | 67,872 |
| Non-controlling interest | 56 | 82 | 76 |
| Total equity | 68,359 | 67,771 | 67,948 |
| Deferred tax liabilities | 2,914 | 3,138 | 2,887 |
| Non-current provisions | 540 | 539 | 566 |
| Non-current interest-bearing liabilities | 6,408 | 6,481 | 6,282 |
| Non-current lease liabilities | 2,400 | 2,510 | 2,148 |
| Other non-current liabilities | 222 | 339 | 235 |
| Total non-current liabilities | 12,485 | 13,007 | 12,119 |
| Accounts payable | 17,309 | 19,093 | 17,001 |
| Current tax liabilities | 921 | 1,125 | 1,135 |
| Current interest-bearing liabilities | 211 | 3,080 | 1,428 |
| Current lease liabilities | 799 | 796 | 764 |
| Other current liabilities and provisions | 7,331 | 7,773 | 7,445 |
| Total current liabilities | 26,572 | 31,868 | 27,773 |
| Total equity and liabilities | 107,416 | 112,646 | 107,839 |
| Pledged assets | 33 | 44 | 48 |
| Contingent liabilities | 6,504 | 5,392 | 5,362 |
Consolidated statement of changes in equity
| Equity attributable of the parent company's shareholders | |||||||
|---|---|---|---|---|---|---|---|
| SEK millions | Share capital |
Other contributed funds |
Reserves | Retained earnings |
Total equity |
Non controlling interest |
Total equity |
| Total equity, Dec 31, 2022 | 9,063 | 23,022 | 15,891 | 19,149 | 67,124 | 66 | 67,191 |
| Changes Jan 1 - June 30, 2023 | |||||||
| Total comprehensive income for the period |
1,845 | 7,680 | 9,525 | 7 | 9,532 | ||
| Non-controlling interest through business acquisition |
— | 11 | 11 | ||||
| Dividend, parent company's shareholders |
-8,960 | -8,960 | -8,960 | ||||
| Dividend, non-controlling interest | -2 | -2 | |||||
| Total equity, Jun 30, 2023 | 9,063 | 23,022 | 17,736 | 17,869 | 67,689 | 82 | 67,771 |
| Changes July 1 - Dec 31, 2023 | |||||||
| Total comprehensive income for the period |
-3,942 | 5,470 | 1,528 | 1,528 | |||
| Dividend, non-controlling interest | — | -6 | -6 | ||||
| Purchases of own shares | -1,347 | -1,347 | -1,347 | ||||
| Total equity, Dec 31, 2023 | 9,063 | 23,022 | 13,794 | 21,993 | 67,872 | 76 | 67,948 |
| Changes Jan 1 - June 30, 2024 | |||||||
| Total comprehensive income for the period |
1,567 | 5,027 | 6,594 | 1 | 6,595 | ||
| Reclassification to assets under construction |
0 | 0 | 0 | ||||
| Result from transaction with owners of non-controlling interests |
-18 | -18 | -21 | -39 | |||
| Dividend, parent company's shareholders |
-4,983 | -4,983 | -4,983 | ||||
| Dividend, non-controlling interest | — | -1 | -1 | ||||
| Purchases of own shares | -1,160 | -1,160 | -1,160 | ||||
| Cancellation of own shares | -292 | 292 | — | — | |||
| Bonus issue | 292 | -292 | — | — | |||
| Total equity, Jun 30, 2024 | 9,063 | 23,022 | 15,361 | 20,858 | 68,304 | 56 | 68,359 |
Consolidated statement of cash flows, in summary
| Q2 Q2 Jan-Jun Jan-Jun SEK millions OPERATING ACTIVITIES Operating result 2,969 4,963 6,126 9,696 Reversal of non-cash items: 1,070 907 2,054 1,774 -Depreciation, amortization and write-down of fixed assets -46 -19 -16 -69 -Other non-cash items 86 91 205 194 Received and paid interest Income taxes paid -1,246 -1,672 -2,282 -2,426 -145 1,094 -1,623 -524 Change in working capital 2,688 5,365 4,464 8,645 Cash flow from operating activities INVESTING ACTIVITIES Investments in intangible and tangible fixed assets -1,250 -1,469 -3,280 -2,617 -6,567 1 482 752 487 1,264 Sales of intangible and tangible fixed assets — 0 — -24 Acquisitions, shares and operations Investments/contributions in affiliated companies and joint ventures — — — — -20 — 61 — 61 61 Divested shares and operations 0 -4 0 47 23 Other investing activities -1,249 -929 -2,528 -2,045 -5,291 Cash flow from investing activities FINANCING ACTIVITIES -4,983 -8,960 -4,983 -8,960 Dividend, parent company's shareholders -1 -2 -1 -2 Dividend, non-controlling interest — — -1,215 — Purchases of own shares -1,170 1,161 -1,217 1,184 Change in loans Acquisition of shares, non-controlling interest -38 — -38 — Other financing -487 1,636 1,017 1,527 -6,680 -6,164 -6,438 -6,250 Cash flow from financing activities CASH AND CASH EQUIVALENTS 28,977 27,008 28,916 24,900 24,900 Cash and cash equivalents at beginning of period Cash flow for the period -5,241 -1,729 -4,502 350 156 -761 -522 -732 Translation differences, cash and cash equivalents 23,892 24,517 23,892 24,517 CASH AND CASH EQUIVALENTS, END OF PERIOD Contracted, non-utilized overdraft facilities 8,429 8,750 8,429 8,750 Disposable cash and cash equivalents (incl. non-utilized overdraft facilities) 32,321 33,267 32,321 33,267 |
2024 | 2023 | 2024 | 2023 | 2023 |
|---|---|---|---|---|---|
| Full-year | |||||
| 16,467 | |||||
| 3,674 | |||||
| -61 | |||||
| 437 | |||||
| -3,879 | |||||
| 4,836 | |||||
| 21,473 | |||||
| -52 | |||||
| -8,960 | |||||
| -8 | |||||
| -1,292 | |||||
| -557 | |||||
| — | |||||
| -1,948 | |||||
| -12,765 | |||||
| 3,417 | |||||
| 599 | |||||
| 28,916 | |||||
| 8,239 | |||||
| 37,155 |
Key figures
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year | |
| Operating margin (%) | 10 | 16 | 11 | 15 | 14 |
| Earnings per share (SEK) | 2.43 | 3.81 | 5.00 | 7.40 | 12.67 |
| Equity per share (SEK) | 68.54 | 65.73 | 68.54 | 65.73 | 65.91 |
| Net debt/equity ratio (%) | -21 | -17 | -21 | -17 | -27 |
| Equity ratio (%) | 64 | 60 | 64 | 60 | 63 |
| Return on capital employed, rolling 12 months (%) | 18 | -12 | 18 | -12 | 22 |
| Return on equity, rolling 12 months (%) | 15 | -21 | 15 | -21 | 19 |
| Average number of shares outstanding during the period | |||||
| (millions) | 996.6 | 1,029.8 | 998.9 | 1,029.8 | 1,028.0 |
| Number of shares at end of period (millions) | 996.6 | 1,029.8 | 996.6 | 1,029.8 | 1,029.8 |
| Number of employees at end of period | 14,486 | 14,632 | 14,486 | 14,632 | 14,565 |
18 | SSAB AB(publ), P.O. Box 70, SE-101 21 Stockholm, Sweden. www.ssab.com. Reg.no. 556016-3429
Notes to the condensed financial report
Accounting principles
This interim report has been prepared in compliance with IAS 34. The accounting principles are based on IFRS Accounting Standards as adopted by the EU and ensuing references to Chapter 9 of the Swedish Annual Accounts Act. The accounts of the parent company have been prepared in compliance with RFR 2 and the Swedish Annual Accounts Act.
No material changes in accounting principles have taken place since the Annual Report for 2023.
The Council for Swedish Financial Reporting Supervision (The Council) has done a review of the SSAB Annual Report for 2022. SSAB has provided supplementary information in an ongoing dialogue. The Council has issued formal notices regarding a part of the goodwill impairment reported in December 2022. SSAB's firm opinion is that the impairment, audited by the company's auditors, was in accordance with IFRS.
Valuation of financial assets and liabilities
Debt reported in the balance sheet as long-term interest-bearing liabilities (including the short-term part) amounted to SEK 6,413 million at June 30, 2024 while its fair value was SEK 5,890 million. Since the loans will be held until maturity, they are not reported at fair value.
Derivative assets and liabilities
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK millions | Jun 30 | Jun 30 | Dec 31 |
| Derivative assets recognized in | |||
| Non-current financial assets | 195 | 524 | 187 |
| Other current receivables | 209 | 446 | 232 |
| Derivative liabilities recognized in | |||
| Other non-current liabilities | 31 | 119 | 43 |
| Other current liabilities and provisions | 134 | 168 | 319 |
The fair value valuation of the financial instruments in SSAB in based on data in accordance with level 2, with the exception of electricity derivatives, where the fair value is based on listed market prices, and which are therefore classified on level 1.
Information about the business segments
SSAB is organized into five reportable business segments with a clear profit responsibility. The business segments consist of the three divisions: SSAB Special Steels, SSAB Europe and SSAB Americas as well as the fully owned subsidiaries Tibnor and Ruukki Construction. Tibnor and Ruukki Construction are operated as independent subsidiaries. The descriptions of the reportable business segments can be found in the Annual Report 2023.
External revenue by business segment, geographical area and product area
| External revenue Q2 2024 | Business segments | |||||
|---|---|---|---|---|---|---|
| SEK millions | SSAB Special Steels |
SSAB Europe |
SSAB Americas |
Tibnor | Ruukki Construction |
Total |
| Geographical areas | ||||||
| Sweden | 153 | 2,287 | — | 1,212 | 383 | 4,035 |
| Finland | 109 | 1,334 | — | 528 | 408 | 2,379 |
| Other Europe | 3,008 | 5,241 | 5 | 1,562 | 675 | 10,490 |
| USA | 1,771 | 621 | 5,767 | — | 1 | 8,159 |
| Rest of the world | 2,609 | 289 | 311 | 6 | 2 | 3,218 |
| Total | 7,650 | 9,771 | 6,083 | 3,308 | 1,470 | 28,282 |
| Product area | ||||||
| Steel products | 7,515 | 9,145 | 6,083 | — | — | 22,744 |
| Trading operations | — | — | — | 3,308 | — | 3,308 |
| Ruukki Construction operations | — | — | — | — | 1,470 | 1,470 |
| Slabs, by-products and scrap | 95 | 613 | — | — | — | 707 |
| Other | 40 | 13 | — | — | — | 53 |
| Total | 7,650 | 9,771 | 6,083 | 3,308 | 1,470 | 28,282 |
| External revenue Q2 2023 | Business segments | ||||||
|---|---|---|---|---|---|---|---|
| SEK millions | SSAB Special Steels |
SSAB Europe |
SSAB Americas |
Tibnor | Ruukki Construction |
Total | |
| Geographical areas | |||||||
| Sweden | 145 | 2,567 | — | 1,267 | 442 | 4,421 | |
| Finland | 190 | 1,658 | — | 675 | 346 | 2,869 | |
| Other Europe | 3,320 | 5,442 | 41 | 1,616 | 766 | 11,185 | |
| USA | 2,002 | 621 | 6,966 | — | 1 | 9,590 | |
| Rest of the world | 2,788 | 384 | 536 | 3 | — | 3,711 | |
| Total | 8,445 | 10,672 | 7,543 | 3,561 | 1,556 | 31,777 | |
| Product area | |||||||
| Steel products | 8,301 | 9,975 | 7,543 | — | — | 25,820 | |
| Trading operations | — | — | — | 3,561 | — | 3,561 | |
| Ruukki Construction operations | — | — | — | — | 1,556 | 1,556 | |
| Slabs, by-products and scrap | 76 | 689 | — | — | — | 765 | |
| Other | 68 | 8 | — | — | — | 76 | |
| Total | 8,445 | 10,672 | 7,543 | 3,561 | 1,556 | 31,777 |
| External revenue Jan-Jun 2024 | Business segments | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK millions | SSAB Special Steels |
SSAB Europe |
SSAB Americas |
Tibnor | Ruukki Construction |
Total | |||
| Geographical areas | |||||||||
| Sweden | 369 | 4,371 | — | 2,389 | 647 | 7,775 | |||
| Finland | 211 | 2,379 | — | 1,033 | 652 | 4,274 | |||
| Other Europe | 6,070 | 10,404 | 19 | 2,952 | 1,178 | 20,623 | |||
| USA | 3,473 | 1,186 | 11,643 | — | 2 | 16,305 | |||
| Rest of the world | 5,088 | 684 | 664 | 12 | 4 | 6,452 | |||
| Total | 15,210 | 19,025 | 12,326 | 6,385 | 2,484 | 55,430 | |||
| Product area | |||||||||
| Steel products | 14,807 | 17,681 | 12,326 | — | — | 44,815 | |||
| Trading operations | — | — | — | 6,385 | — | 6,385 | |||
| Ruukki Construction operations | — | — | — | — | 2,484 | 2,484 | |||
| Slabs, by-products and scrap | 331 | 1,323 | — | — | — | 1,654 | |||
| Other | 72 | 20 | — | — | — | 92 | |||
| Total | 15,210 | 19,025 | 12,326 | 6,385 | 2,484 | 55,430 |
| External revenue Jan-Jun 2023 | Business segments | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK millions | SSAB Special Steels |
SSAB Europe |
SSAB Americas |
Tibnor | Ruukki Construction |
Total | |||
| Geographical areas | |||||||||
| Sweden | 403 | 4,320 — 2,725 |
836 | 8,283 | |||||
| Finland | 372 | 3,185 | — | 1,450 | 718 | 5,726 | |||
| Other Europe | 6,548 | 11,848 | 117 | 3,393 | 1,325 | 23,231 | |||
| USA | 3,851 | 1,116 | 13,926 | — | 2 | 18,895 | |||
| Rest of the world | 5,643 | 690 | 1,205 | 6 | 1 | 7,546 | |||
| Total | 16,818 | 21,160 | 15,247 | 7,575 | 2,881 | 63,681 | |||
| Product area | |||||||||
| Steel products | 16,449 | 19,711 | 15,247 | — | — | 51,407 | |||
| Trading operations | — | — | — | 7,575 | — | 7,575 | |||
| Ruukki Construction operations | — | — | — | — | 2,881 | 2,881 | |||
| Slabs, by-products and scrap | 220 | 1,430 | — | — | — | 1,649 | |||
| Other | 149 | 20 | — | — | — | 169 | |||
| Total | 16,818 | 21,160 | 15,247 | 7,575 | 2,881 | 63,681 |
Alternative performance measures
SSAB has applied the guidelines issued by ESMA (European Securities and Markets Authority) on alternative performance measures (APMs). These performance measures are not defined in accordance with IFRS, but provide complementary information to investors and company management about the company's financial position and development. In addition to the definitions below, further definitions can be found in the Annual Report Note A.3.
Adjusted operating result
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Operating result | 2,969 | 4,963 | 6,126 | 9,696 | 16,467 |
| Items affecting comparability | — | — | — | — | — |
| Adjusted operating result | 2,969 | 4,963 | 6,126 | 9,696 | 16,467 |
EBITDA and adjusted EBITDA
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Operating result | 2,969 | 4,963 | 6,126 | 9,696 | 16,467 |
| Depreciation, amortization and impairment | 1,070 | 907 | 2,054 | 1,774 | 3,674 |
| EBITDA | 4,038 | 5,871 | 8,180 | 11,470 | 20,141 |
| Items affecting comparability | — | — | — | — | — |
| Adjusted EBITDA | 4,038 | 5,871 | 8,180 | 11,470 | 20,141 |
Financial information, per quarter
The Group's adjusted result per quarter
| SEK millions | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 31,575 | 35,516 | 31,516 | 30,138 | 31,904 | 31,777 | 29,339 | 26,469 | 27,148 | 28,282 |
| Operating expenses | -22,381 | -24,289 | -23,922 | -25,505 | -26,303 | -25,892 | -24,028 | -23,094 | -22,992 | -24,244 |
| Depreciation/amort. | -821 | -844 | -857 | -869 | -869 | -907 | -935 | -963 | -985 | -1,070 |
| Affiliated companies | 4 | 12 | 5 | 4 | 2 | -14 | -5 | -12 | -14 | 0 |
| Financial items | -101 | -136 | -20 | 259 | 54 | 56 | 78 | 61 | 161 | 108 |
| Result before tax | 8,276 | 10,260 | 6,722 | 4,027 | 4,787 | 5,019 | 4,449 | 2,460 | 3,318 | 3,076 |
Revenue per quarter and business segment
| SEK millions | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| SSAB Special Steels | 7,907 | 8,985 | 8,431 | 8,343 | 8,573 | 8,646 | 8,013 | 6,913 | 7,716 | 7,847 |
| SSAB Europe | 12,657 | 14,357 | 11,989 | 11,065 | 12,293 | 12,953 | 10,909 | 10,072 | 10,817 | 11,641 |
| SSAB Americas | 7,465 | 8,842 | 8,302 | 7,554 | 7,714 | 7,728 | 7,620 | 6,711 | 6,256 | 6,221 |
| Tibnor | 4,463 | 4,783 | 3,594 | 3,784 | 4,048 | 3,600 | 3,012 | 3,030 | 3,112 | 3,344 |
| Ruukki Construction | 1,588 | 2,020 | 1,739 | 1,534 | 1,329 | 1,559 | 1,587 | 1,335 | 1,015 | 1,472 |
| Other | — | — | — | — | — | — | — | — | — | — |
| Group adjustments | -2,504 | -3,472 | -2,539 | -2,143 | -2,053 | -2,709 | -1,802 | -1,593 | -1,769 | -2,244 |
| Total | 31,575 | 35,516 | 31,516 | 30,138 | 31,904 | 31,777 | 29,339 | 26,469 | 27,148 | 28,282 |
Adjusted EBITDA, per quarter and business segment
| SEK millions | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| SSAB Special Steels | 2,350 | 2,648 | 2,674 | 1,649 | 2,380 | 2,305 | 2,126 | 1,199 | 2,143 | 2,023 |
| SSAB Europe | 3,650 | 4,476 | 1,856 | 189 | 418 | 1,196 | 694 | 599 | 600 | 915 |
| SSAB Americas | 3,041 | 3,563 | 3,089 | 2,782 | 2,728 | 2,697 | 2,710 | 1,739 | 1,473 | 1,272 |
| Tibnor | 457 | 653 | -133 | -361 | 50 | 2 | -58 | -6 | 89 | 110 |
| Ruukki Construction | 209 | 263 | 206 | 56 | 41 | 63 | 83 | 14 | -18 | 99 |
| Other | -508 | -361 | -92 | 323 | -18 | -393 | -247 | -181 | -145 | -382 |
| Total | 9,198 | 11,241 | 7,599 | 4,637 | 5,600 | 5,871 | 5,307 | 3,364 | 4,142 | 4,038 |
Adjusted operating result per quarter and business segment
| SEK millions | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| SSAB Special Steels | 2,086 | 2,373 | 2,390 | 1,369 | 2,094 | 2,003 | 1,808 | 847 | 1,781 | 1,659 |
| SSAB Europe | 3,249 | 4,069 | 1,446 | -229 | 0 | 764 | 254 | 165 | 163 | 400 |
| SSAB Americas | 2,991 | 3,511 | 3,034 | 2,725 | 2,675 | 2,642 | 2,653 | 1,681 | 1,412 | 1,204 |
| Tibnor | 414 | 608 | -181 | -408 | 1 | -50 | -113 | -59 | 36 | 57 |
| Ruukki Construction | 160 | 209 | 156 | -1 | -9 | 10 | 28 | -36 | -78 | 42 |
| Other | -522 | -374 | -104 | 311 | -29 | -405 | -260 | -198 | -157 | -394 |
| Total | 8,377 | 10,395 | 6,742 | 3,768 | 4,733 | 4,963 | 4,371 | 2,400 | 3,157 | 2,969 |
No items affecting comparability were reported in 2023 or 2024.
| SEK millions | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| SSAB Special Steels | -141 | -5 | -149 | -18,124 | — | — | — | — | — | — |
| SSAB Europe | -25 | -1 | 1 | -2,201 | — | — | — | — | — | — |
| SSAB Americas | — | — | — | -12,401 | — | — | — | — | — | — |
| Tibnor | — | — | — | -542 | — | — | — | — | — | — |
| Ruukki Construction | -49 | — | — | — | — | — | — | — | — | — |
| Other | — | — | — | — | — | — | — | — | — | — |
| Total | -215 | -6 | -148 | -33,269 | — | — | — | — | — | — |
Items affecting comparability in operating result, per quarter and business segment
Items affecting comparability during 2022 related mainly to impairment of goodwill.
Production and shipments
| Thousand tonnes | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Crude steel production | ||||||||||
| SSAB Special Steels | 630 | 634 | 592 | 453 | 608 | 651 | 584 | 409 | 586 | 576 |
| SSAB Europe | 889 | 1,049 | 1,068 | 905 | 1,141 | 1,142 | 1,056 | 1,028 | 1,077 | 1,063 |
| SSAB Americas | 232 | 303 | 256 | 283 | 295 | 297 | 296 | 271 | 278 | 289 |
| Total | 1,751 | 1,985 | 1,916 | 1,641 | 2,044 | 2,090 | 1,936 | 1,707 | 1,941 | 1,927 |
| Rolling production | ||||||||||
| SSAB Special Steels | 419 | 460 | 430 | 358 | 454 | 447 | 418 | 300 | 419 | 421 |
| SSAB Europe | 1,065 | 1,093 | 1,010 | 873 | 1,157 | 1,186 | 1,026 | 1,034 | 973 | 1,152 |
| SSAB Americas | 233 | 282 | 232 | 273 | 288 | 265 | 283 | 264 | 281 | 265 |
| Total | 1,716 | 1,835 | 1,672 | 1,505 | 1,899 | 1,898 | 1,727 | 1,598 | 1,673 | 1,839 |
| Steel shipments | ||||||||||
| SSAB Special Steels | 381 | 396 | 336 | 305 | 349 | 364 | 313 | 279 | 327 | 337 |
| SSAB Europe | 844 | 838 | 713 | 778 | 912 | 907 | 759 | 776 | 818 | 870 |
| SSAB Americas | 438 | 476 | 416 | 418 | 476 | 451 | 439 | 437 | 437 | 439 |
| Total | 1,664 | 1,711 | 1,465 | 1,502 | 1,737 | 1,722 | 1,510 | 1,491 | 1,583 | 1,646 |
Analysis of total change in revenue per business segment
| Change vs. Q2 2023 | Change vs. Q1 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| % | SSAB Special Steels |
SSAB Europe |
SSAB Americas |
SSAB Special Steels |
SSAB Europe |
SSAB Americas |
|||
| Price | -3 | -6 | -18 | -2 | 1 | -7 | |||
| Product mix | 1 | 0 | 0 | 0 | 1 | 1 | |||
| Volume | -7 | -4 | -3 | 3 | 6 | 1 | |||
| Currency effects | -2 | 0 | 1 | 2 | 2 | 3 | |||
| Other sales | 2 | 0 | 0 | -1 | -2 | 1 | |||
| Total | -9 | -10 | -20 | 2 | 8 | -1 |
Financial reports – The Parent company
Parent company´s statement of profit and loss, in summary
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Gross profit | — | — | — | — | — |
| Selling and administrative costs | -228 | -166 | -389 | -305 | -638 |
| Other operating income/expenses | 107 | 100 | 217 | 193 | 370 |
| Operating result | -121 | -66 | -172 | -111 | -268 |
| Financial items | 133 | -12 | 283 | 12 | 10,165 |
| Result after financial items | 12 | -78 | 111 | -99 | 9,897 |
| Appropriations | — | — | — | — | 65 |
| Result before tax | 12 | -78 | 111 | -99 | 9,962 |
| Income tax | -3 | 18 | -24 | 22 | -16 |
| Result for the period | 8 | -61 | 87 | -78 | 9,946 |
Parent company´s statement of comprehensive income, in summary
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| SEK millions | Q2 | Q2 | Jan-Jun | Jan-Jun | Full-year |
| Result for the period | 8 | -61 | 87 | -78 | 9,946 |
| Other comprehensive income | |||||
| Items that may be classified to the income statement | |||||
| Cash flow hedges | -16 | -17 | -19 | -30 | -61 |
| Income tax attributable to cash flow hedges | 3 | 4 | 4 | 6 | 13 |
| Other comprehensive income | -13 | -14 | -15 | -24 | -49 |
| Total comprehensive income for the period | -4 | -74 | 72 | -101 | 9,897 |
Parent company´s statement of financial position, in summary
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| SEK millions | Jun 30 | Jun 30 | Dec 31 |
| Assets | |||
| Fixed assets | 76,558 | 71,579 | 76,458 |
| Other current assets | 3,184 | 9,268 | 3,100 |
| Cash and cash equivalents | 22,562 | 22,600 | 27,398 |
| Total assets | 102,304 | 103,447 | 106,957 |
| Equity and liabilities | |||
| Restricted equity | 9,964 | 9,964 | 9,964 |
| Unrestricted equity | 59,122 | 56,542 | 65,193 |
| Total equity | 69,086 | 66,506 | 75,157 |
| Non-current liabilities and provisions | 4,339 | 4,676 | 4,346 |
| Current liabilities and provisions | 28,879 | 32,265 | 27,453 |
| Total equity and liabilities | 102,304 | 103,447 | 106,957 |
This report has been published in Swedish and English. In the event of any differences between the English translation and the Swedish original, the Swedish report shall prevail.
Auditor's review report
SSAB AB, corporate identity number 556016-3429
Introduction
We have reviewed the condensed interim report for SSAB AB as at June 30, 2024 and for the six months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm the date of our electronic signature
Ernst & Young AB
Rickard Andersson Authorized Public Accountant
For further information:
Per Hillström, Head of Investor Relations, Tel +46 70-295 29 12 Viktoria Karsberg, Head of Corporate Identity and Group Communications, Tel +46 72-233 52 88
Interim report for January-September 2024
The interim report for the first nine months of 2024 will be published on October 23, 2024.
SSAB AB (publ) P.O. Box 70, SE-101 21 Stockholm, Sweden Telephone +46 8-45 45 700. Telefax +46 8-45 45 725 Visiting address: Klarabergsviadukten 70 D6, Stockholm Email: [email protected] www.ssab.com