Report for the first three quarters of 2000

Report for the first three quarters of 2000 Profit after financial items, excluding non-recurring items, improved by SEK 670 million to SEK 816 (146) million as a result of increased volumes and improved margins in the steel operations. In addition, SEK 575 million was included in the profit as a net effect of disbursements of surplus funds from SPP and additional energy taxes for the years 1995-1999. Profit after financial items thus amounted to SEK 1,391 (146) million. Deliveries of the steel operations' niche products increased during the year by 13%, and constituted just over 40% of the total deliveries. For reason of health the President and CEO Torsten Sandin today expressed his wish of promptly leaving his office. Until further notice, the Executive Vice President Anders Ullberg will hold the office. Consolidated Profit and Loss Account 1999 2000 1999 2000 1999 Oct 99- SEK millions Q 3 Q 3 Q 1-3Q 1-3 Full Sep Year 00 Sales 3,5984,161 12,29414,01 16,80718,52 0 3 Costs of goods sold - --10,792 --14,493 - 3,3523,843 11,82 15,52 3 4 Gross profit 246 318 1,5022,187 2,3142,999 Selling and administrative -411 -421 -1,267 - -1,738 - expenses 1,322 1,793 Other operating revenues and -15 -3 -40 589 -59 570 expenses *) Affiliated companies 1 3 4 12 25 33 Operating profit -179 -103 1991,466 5421,809 Financial items -22 -39 -53 -75 -75 -97 Profit after financial items -201 -142 1461,391 4671,712 Tax 60 39 -46 -396 -177 -527 Minority shares -2 -5 -8 -39 -9 -40 Profit after tax -143 -108 92 956 2811,145 Return on capital employed - - - - 5 15 before tax (%) Return on equity after tax - - - - 3 12 (%) Earnings per share (SEK) -1.30-1.00 0.80 8.70 2.5010.30 Equity per share (SEK) 84.8090.80 84.8090.80 86.5090.80 Equity ratio (%) 57 51 57 51 56 51 Number of shares at end of 112.1105.0 112.11105.0 112.11105.0 the period (million) 1 3 3 3 *) The net present value of disbursements of surplus funds from SPP amounts to SEK 625 million and is included as other operating revenues during the second quarter of 2000. Market The International Iron and Steel Institute (IISI) anticipates that world steel consumption will increase this year by 6% to slightly more than 750 million tonnes. Trends in Western Europe are the same, and it is anticipated that consumption will increase to the highest level to date - 5% higher than last year. IISI also anticipates an increase next year, while at a slower pace. Demand has continued to be good for all products. Delivery times on the market, which were generally long in the beginning of the year, have gradually decreased, however, and have now reached more normal levels. Deliveries by the steel operations to the Swedish market have continued at a high level and, during the first three quarters of the year, were 20% higher than last year. During the quarter, it was possible to carry out price increases in local currencies with respect to sheet and plate products which were renegotiated. In total, prices for the steel operations increased by slightly more than 6% in Swedish kronor as compared with the preceding quarter. Of the increase, just over 4 percentage points were due to higher prices in local currencies, 1 percentage point was related to an improved product mix, and just under 1 percent was a consequence of a weaker Swedish krona. To date this year, prices in the steel operations have thus been 11% higher than last year. Production and Deliveries The conversion of the large blast furnace in Luleå resulted in a significant limitation on crude steel production in Luleå commencing in the beginning of June until the end of August. Compared with a year with a normal summer closure of the blast furnaces, this resulted in a reduction of production of approx. 150 thousand tonnes. Thus, crude steel production during the quarter was 11% lower than last year, and amounted to 547 thousand tonnes. Total crude steel production for the first three quarters thus amounted to 2,398 thousand tonnes, a decrease of just under 1% compared with last year. In order to compensate for the decrease in crude steel production during the conversion of the blast furnace, agreements for the purchase of steel slabs from other steel works were executed during the first half of the year. Nonetheless, occasional shortages of steel slabs resulted in somewhat slower production in the hot rolling strip mill during the quarter. However, total sheet production amounted to 537 thousand tonnes, which was 3% higher than during the corresponding quarter last year. Total sheet production for the first three quarters was 5% higher than in 1999. Deliveries of the steel operations' niche products, high strength sheet and quenched steels, amounted to 225 thousand tonnes during the quarter. Consequently, total deliveries of these products during the first three quarters were 13% higher than last year, and amounted to 866 thousand tonnes. Total deliveries from the steel operations increased during the third quarter by 5% compared with the corresponding quarter in 1999, and amounted to 545 thousand tonnes. To date during the year, deliveries have thus been 7% higher than last year. Volumes in the trading operations which are dependent on the Swedish market continued to be high during the quarter and have thus far increased by 10% compared with the preceding year. Non-Recurring Items Following a tax audit, the tax authority determined that an energy tax shall be imposed in respect of certain by-products (energy-rich gases) generated in the metallurgy process. Largely, the entire effect of this decision will affect metallurgy in Oxelösund where the energy tax will increase by slightly more than SEK 10 million per year. The operating profits for the year also includes energy taxes for the years 1995 through 1999 in the amount of SEK 50 million. The tax decision will be appealed. The group's share of SPP's surplus funds amounts to SEK 734 million. Based on SPP's rules, it is estimated that the payments to group companies will take place during a period of just over 6 years. The current value of the disbursements amounts to SEK 625 million and was reported during the second quarter as other operating revenue. Thus, total non-recurring items in the results for the first three quarters amount to SEK 575 (0) million, of which SEK -50 (0) relate to the third quarter. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: The full report The full report

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SSAB is a Nordic and US-based steel company. SSAB offers value added products and servicesdeveloped in close cooperation with its customers to create a stronger, lighter and more sustainableworld. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finlandand the US. SSAB is listed on the Nasdaq OMX Nordic Exchange in Stockholm and has asecondary listing on the Nasdaq OMX in Helsinki.