REPORT PREVIEW

SSAB reported an adjusted loss of SEK 220m, well short of the Street’s forecast of SEK 338m and 3Q EBIT of SEK 502m.  Management attributed weak 4Q results to continued weakness in Europe, marked by inventory destocking by customers, partly offset by relatively strong performance in the Americas.

Guidance was fairly limited although management said signs of a recovery, including restocking, are apparent in the U.S. and SSAB expects plate prices in North America to increase sequentially, as several plate producers have announced 1Q increases.  Declining steel prices in most parts of the world in 4Q will have a negative impact on the company’s 1Q contract prices and results, while lower iron ore prices renegotiated for 1Q delivery would not benefit SSAB’s results until 2Q.

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