SSAB's earnings down just under 15% on last year

7/23/2001 5:51 AM EST

SSAB today presented its accounts for the first half of the year. Profit
after financial items declined by SEK 122 million to SEK 786 (908)
million. The comparison does not include the effect of SSP surplus funds
which were included in last year's results in the amount of SEK 625
million.

-Prices for sheet have continued to be under pressure, says CEO Anders
Ullberg in a comment to the accounts. Therefore, as during the first
quarter, we have chosen to prioritize price over volume. Our prices in
the steel operations have thus been more stable than during previous
downturns in the business cycle.

-Demand for quenched steels has been strong, says Anders Ullberg, but
our volumes have been restricted by available quenching capacity. Our
new quenching line in Oxelösund is now ready to commence production
after the summer. We will then have the possibility to once again expand
within this prioritized product area.

-By way of contrast, use of sheet within the telecommunications and
vehicle industries has weakened noticeably. This has also affected
volume trends for our niche products within high-strength sheet.
Although we have signed a number of agreements for orders with new
customers, deliveries of these niche products have been somewhat lower
than last year.

-It is difficult to assess trends during the second half of the year. We
believe that volumes in the sheet operations can increase somewhat after
the summer. On the other hand, gross profit margins in the steel
operations will decline since, during the second half of the year, we
will feel the full impact of the new, expensive coal agreements, at the
same time as prices for primarily cold-rolled and metal-coated sheet
continue to be under pressure, concludes Anders Ullberg.


------------------------------------------------------------
This information was brought to you by Waymaker http://www.waymaker.net