Positive earnings trend

7/22/2002 8:02 AM EST

SSAB today presented its Half Year Report for 2002. Profit after
financial items amounted to SEK 477 (786) million. Profit for the second
quarter, SEK 295 million, thus represents a considerable improvement on
the profit for the first quarter, which amounted to SEK 182 million.

- We believe that the downturn in the economy in Western Europe that
began in the autumn of 2000 has now levelled out, but we do not
anticipate any general increase in steel consumption before the end of
this year, says CEO Anders Ullberg in a comment on the Half Year Report.

- Prior to 2002, we decided to focus on three areas in order to
counteract a continued relatively weak steel market, namely: increased
sales of, in particular, extra and ultra high-strength sheet, as well as
quenched steels within the plate area; maintaining processing costs at
an unchanged level; and improving cash flow. The Half Year Report
demonstrates that we have made considerable progress towards these
goals, adds Anders Ullberg.

- During the second quarter, deliveries of our niche products, i.e. high-
strength sheet and quenched steels, were just over 15% higher than last
year and, so far this year, have increased by 5% compared with last
year. Notwithstanding increased volumes, processing costs were 1% lower
than last year and, thanks to a very strong cash flow during the second
quarter, we are able to report a cash flow during the first half of the
year of just over SEK 900 million, states Anders Ullberg.

- In addition, we can note that the tough and protracted negotiations
regarding new coal and iron ore prices finally resulted in price
reductions of 3% and almost 8% respectively. Purchases of iron ore and
coal, which are carried out in dollars, were hedged in the middle of
July. The price reductions and the hedged lower dollar rate will thus
result in a significant decrease in costs during the second half of the
year.

- However, for some time to come we will be forced to endure continued
uncertainty as to how, in the final analysis, we will be affected by the
American steel tariffs. We have sought exemptions from the tariffs for
our niche products. Thus far, however, we have only been granted
exemptions for approx. one quarter of our export volumes of such
products to the U.S. The delay is injurious both to us and our American
customers. We can only hope that common sense and free trade will
prevail, concludes Anders Ullberg.