We are pleased to welcome Ingalill to Ovako’s Board. With her solid experience from relevant industries she will be a great asset to Ovako and the Board on the exciting journey the lies ahead
In 2016 we made great progress with Ovako’s restructuring program and the group delivered increased sales volumes and an operating result that was significantly improved over the previous year. Despite the fact that Ovako’s financial performance is still not satisfactory and much work remains, I can say that Ovako is well positioned to face future challenges
Although there is still a lot of uncertainty about the long-term development for the industry, we are pleased to see that the positive trend we saw at the end of 2016 has continued into 2017
These investments in Hofors mean we can now double the format of some of our ingots, from 4.2 tons to 8.4 tons, allowing us to remain relevant, grow and take market share in an industry of the future. The program is also a preparation for the potential to handle even larger formats, making it an investment for the future
Ovako demonstrated clear operational and financial improvements in 2016. We made great progress in the restructuring program that began just over a year ago, and we delivered increased sales volumes and operating results that were considerably better than in the previous year. Overall, this gave results in most areas for the full-year that were much better than in the previous year. Despite this our financial results are still not satisfactory and much work remains for us on the road to becoming one of the world’s most successful steel companies
The second quarter of 2016 was characterized by increased demand. Order intake strengthened further, and was 12 percent better than in the corresponding period of the previous year.
We are reinforcing the program as a proactive way of meeting the current market conditions and securing the future success of Ovako. We will use all our resources to manage personnel redundancies in a responsible way
Ovako has continued to develop its operations in the first quarter 2016 in order to compete more effectively in the challenging global market. Low industrial activity and increased imports into Europe put additional demands on Ovako's activities in both production and sales.
I would like to welcome Johan to Ovako, where he will contribute with his broad financial and managerial experience from international business, and support Ovako in its future success
We have plenty to be proud of, even though the market is challenging. We offer clean steel, we are a world leader in a number of product areas, and we are contributing to a more sustainable society and a cleaner world
2015 was a challenging year, and the weak demand that marked the year continued into the fourth quarter. However, in the fourth quarter, order intake increased by 3 percent compared to the previous year.
I would like to thank Finn and Björn for their commitment and important contribution in the board supporting the strategic repositioning of Ovako
I am delighted to get the trust to take on this challenge. We have developed a clear strategy based on technological leadership, strong customer focus and operational efficiency. A key effort the coming years is to implement our restructuring program, where the focus lies on increased cost efficiency and productivity. The challenges in an international and very competitive environment are many; I am convinced that Ovako has a very good potential and capability of succeeding.
We wish to thank Tom Erixon for his contribution of several years of strong leadership in turbulent times. Senior and competent management teams have been recruited to the local sites. Furthermore Ovako has strengthened the product development and marketing towards our customers as well as expanded the sale organizations in Europe and Asia. Important measures to increase efficiency have also been taken. The Board of Directors fully supports the initiated restructuring program that was launched recently and wishes Tom Erixon further success in his new position.
The third quarter was challenging for Ovako, with a significantly worse business climate than in the first half. Despite this, the sales volume was slightly better than in the same quarter last year.
We are operating in a market with low expected growth over the next three years. The European production capacity in engineering steel is dimensioned for the market peak in 2007, and this is reflected at Ovako too in terms of overcapacity. This is not sustainable in the long term. Hence, we have decided to take action now in order to reduce costs and ensure the future strength of our business.
We have worked extensively to identify applications where our residual products generate added value. It is therefore gratifying that NCC Roads regards our steel slag as an important component in building sustainable roads
Demand for hot-rolled and processed tube has not been at the level we expected for some time now. Consequently, it makes sense to adjust the workforce to the current rate of production. We hope to manage the redundancy in 2015.
The market was stable during the second quarter and remained at the level of the same period last year. Ovako experienced a positive development in important customer applications such as renewable energy and fuel injection applications.
We are delighted to welcome Janne to Ovako. He will make an excellent contribution to the group's focus on efficient processes and customer orientation
The first quarter showed a significant recovery after a weak ending in 2014.
This acquisition allows us to broaden our offer to customers in the Finnish market and to enhance our contacts with end customers for all Ovako's products
Some of our most demanding customers tell us that safety in cold climates is an increasingly urgent priority. Many are under pressure to comply with demanding oil and gas or shipbuilding standards. Nobody wants to see an accident or unscheduled maintenance when temperatures drop to -40°C and below
Some of the world’s most quality-oriented original equipment manufacturers are already using our IQ-Steel and BQ-Steel grades in order to handle the strain of higher and more complex loads. We see great opportunities in expanding this scope for industries that are facing new design requirements and need lighter, stronger solutions
The gradual market improvement that started mid 2013 continued in the first half of 2014. Markets slowed again in the second half of 2014, with order intake and invoicing ending somewhat lower than in 2013.
Tibnor Oy is a successful company with extensive experience as a distributor for companies including Ovako in the Finnish market. The acquisition of Tibnor Oy means that Ovako can broaden our customer offering in the Finnish market and enhance our contact with end customers regarding all of Ovako's products.
Ovako created the first boron steels in the 1960s, and the performance of WR-Steel confirms that we are still the market leaders today
Following a strong first half, Ovako's development continued to be stable during the third quarter.
The positive earnings trend that began in the autumn of 2013 continued during the second quarter. The efficiency programme for 2014 is on track, and productivity has increased significantly in the first half.
We are happy that our bid has been successful and that we have had a shared view about how Ascometal should be developed going forward
Ovako’s sales continued to strengthen during the first quarter of this year, and have now experienced a positive trend since September last year
Ovako´s order intake and invoicing has steadily increased over the previous year since August 2013. European price development for engineering steel has turned slightly positive in contracts signed for 2014. Ovako expects the positive trends to continue in the first quarter with invoicing increasing compared to the same quarter last year.
Next-generation M-Steel allows us to offer steel produced using advanced technology that provides our customers with the best possible machinability