Profit for the first half of the year of SEK 347 million

8/17/1999 7:05 AM EST

SSAB today reported its half-yearly profit for 1999. The profit after
financial items declined by SEK 919 million to SEK 347 (1,266) million.

- The decline in profit is due to the fact that steel prices declined sharply
at the end of last year and the beginning of this year, says CEO Torsten
Sandin in a comment to the Half Year Report. It is now pleasing to note that
steel prices have stabilised and, during the second quarter, we have had
somewhat higher prices measured in Swedish kronor than during the first
quarter.

- Orders improved gradually during the beginning of the year, which has meant
that we have been able to increase the rate of production in our rolling mills
and thereby also to increase our deliveries from the steel operations by 3%
during the second quarter as compared with the first quarter. Higher volumes
and improved margins resulted in an operating profit which was SEK 140 million
higher in the second quarter than in the first quarter.

- We have continued to focus on our cost trends and working capital, Torsten
Sandin adds. Processing costs remain at the low level we achieved during the
first quarter and, despite higher volumes and wage increases, are still 1%
lower than during the first half of last year. The reduction in working
capital is the reason that we are able to report an improved cashflow compared
with last year.

- The price structure continues to be fragmented prior to the third quarter,
Torsten Sandin concludes. As during the second quarter, we will see both
limited price increases and limited price reductions.