Continued strong growth for niche products

10/23/2003 7:36 AM EST

SSAB today presented its accounts for the first three quarters. Profit
after financial items increased by SEK 325 million and amounted to SEK
881 (556) million. Earnings per share increased to SEK 5.90 (3.80).

- Demand for the Group's niche products, extra and ultra high-strength
sheet and quenched steels, remained strong during the quarter,
emphasises CEO Anders Ullberg in a comment on the report. We are
gradually broadening our customer base at the same time as deliveries to
existing customers continue to increase. Thus far this year, deliveries
of these niche products have increased by 15% over last year. In all,
deliveries of our niche products, high-strength sheet and quenched
steels, account for 43 (40)% of total delivery volumes so far this year.

- The increase in profit is due to higher gross margins in the steel
operations and an increase in the proportion of niche products, states
Anders Ullberg. The stronger margins are due primarily to higher steel
prices, but also to somewhat lower raw materials costs. Prices were 8%
higher than during the first three quarters of last year, while the
lower raw materials costs are due to the weaker dollar.

- Processing costs increased by 6% compared with the first three
quarters of last year. Apart from wage increases, costs have been
affected by a switch-over to shorter summer break and thereby increased
production in the steel operations. In addition, we have carried out a
number of activities in order to further improve certainty of delivery
and yield, and thereby meet the tougher requirements that result from
our niche focus, says Anders Ullberg.

- As yet, no increase in demand for steel has been noted in Western
Europe and, accordingly, it is believed that steel consumption during
the final quarter of the year will be at approximately the same level as
thus far this year. However, the rate of delivery in the steel
operations is expected to increase somewhat due to continued growth for
our niche products, concludes Anders Ullberg.