Half year result, SEK 1,266 million

8/14/1998 11:49 AM EST

Today, SSAB presented its half year report. The profit after financial items
improved by 17% to SEK 1,266 (1,078) million.

-Steel consumption in both Western Europe and in the United States appears to
have now levelled out at a high level, says President Torsten Sandin in a
comment on the half year report. This is the same tendency as we see in Sweden
where demand remains at the level we reached during the second half of last
year.

-Lower steel consumption in Asia has resulted, among other things, in reduced
net exports of steel from Western Europe and has thereby increased the supply
on the steel market. We have felt this through the increased pressure on
prices, says Torsten Sandin.

-Several of our large investment projects are now in their final stage. During
the second quarter, we commenced the running in of the four-high rolling mill
in Oxelösund. At the end of August/beginning of September, we expect to start
production at SSAB HardTech's new facility in the US and to get production
underway in our new rougher in Borlänge at the end of this quarter.

-Obviously, the work on the investment projects involves a lot of effort by
the entire organisation. Getting the four-high rolling mill under way has
taken a little longer than planned, and we have had some minor disruptions in
our sheet operations. Consequently, we have had to reduce deliveries during
the second quarter, which explains why the second quarter was somewhat weaker
than the first, says Torsten Sandin in conclusion.