Sweden's SSAB Q2 revenue and profit rise on higher prices, shipments
Sweden's SSAB Q2 revenue and profit rise on higher prices, shipments
Overview
Sweden steelmaker's Q2 revenue and operating profit rose yr/yr on higher prices and shipments
Q2 earnings per share increased to SEK 2.09 from SEK 1.86
Company continues investments in fossil-free steel and capacity expansion projects
Outlook
SSAB expects a seasonal slowdown in demand and planned maintenance in Q3
Company says implemented price increases will generate somewhat higher prices in Q3
SSAB sees EU trade measures improving supply-demand balance in European market
Result Drivers
HIGHER PRICES - Co said improved operating result was mainly due to higher prices
HIGHER SHIPMENTS - Increased shipments contributed to higher operating result, per co
HIGHER LOGISTICS AND ENERGY COSTS - Co said higher costs, especially for logistics and energy due to the war in the Persian Gulf, partly offset gains
Company press release: ID:nWkr3KZzPw
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 27.49 bln |
|
Q2 EPS |
| SEK 2.09 |
|
Q2 EBIT |
| SEK 2.7 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for SSAB AB is SEK104.00, about 4.9% above its July 21 closing price of SEK99.16
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 20 - Steel Dynamics' second-quarter profit jumps on record shipments, improved pricing
July 21 - Indian steelmakers pivot home as Europe tightens imports, China squeezes margins
July 20 - Russia's Severstal's Q2 profit down 74%
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)