Year-end report 2024: Premium products supportive in a challenging year
The fourth quarter
- Revenue was SEK 23,615 (26,469) million
- Operating result was SEK 487 (2,400) million
- Earnings per share were SEK 0.48 (1.86)
- Net cash was SEK 17.8 (18.2) billion
- Transformation projects in Luleå and Oxelösund proceeding to plan
- The Board proposes a dividend for the financial year 2024 of SEK 2.60 (5.00) per share
Comments by the CEO
SSAB’s operating result for the fourth quarter of 2024 amounted to SEK 487 (2,400) million. Maintenance cost was SEK 690 (1,080) million in the quarter. The operating result for the full year was SEK 7,860 (16,467) million. The markets in Europe and North America were generally weak, whereas SSAB's high-strength steel and other premium products were more resilient. Compared to a year earlier, prices in the USA were significantly lower and the weak market in Europe impacted SSAB Special Steels and SSAB Europe. Cash flow was strong during the fourth quarter, supported by a release of working capital.
SSAB Special Steels had an operating result of SEK 629 (847) million and an operating margin of 10% (12%) during the quarter. SSAB Special Steels’ unique offering provides added value for our customers and this in turn translates into more stable prices than for standard products over the business cycle. SSAB Americas’ operating result for the fourth quarter decreased to SEK 189 (1,681) million and the operating margin was 4% (25%), due to lower prices. SSAB Europe's operating result was SEK 109 (165) million and the operating margin was 1% (2%).
Safety performance continued to improve through SSAB’s long-term and systematic work. LTIF decreased to 0.75 (0.87) during 2024.
The weak market in Europe and the USA continued during the fourth quarter and SSAB carried out maintenance in Oxelösund and Raahe as planned. SSAB is making adjustments within the framework for flexible working hours and a restrictive approach to costs in the beginning of 2025 on a group-wide basis.
The transformation projects in Luleå and Oxelösund are proceeding to plan. The rationale of the projects is to lower cost, improve the product mix and largely remove CO2 emissions. We will shorten lead times, strengthen our ability to manage short-term swings in demand and we can use a flexible mix of raw materials.
We have the flexibility to carry out the transformation in a robust way, taking into account our financial capacity, customer demand and the overall market situation. The investment in Luleå is expected to total EUR 4.5 billion. The plan is expected to improve yearly EBITDA by more than SEK 5 billion compared with continuing to operate the existing system and we will avoid around EUR 2 billion in maintenance capex.
SSAB invites you to a presentation of the Year-end report of 2024 at 9.30am CET on Wednesday, January 29, 2025.
The report will be presented by SSAB’s President and CEO Johnny Sjöström, and CFO Leena Craelius.
The press conference will be held in English and live webcast on SSAB’s website www.ssab.com
Link to webcast: https://edge.media-server.com/mmc/p/4n8nuxf6
You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can choose if you want to dial in or click “Call Me” for a call-back.
Link to teleconference: https://register.vevent.com/register/BI4100391cd80c465788215fef1d015dbb
For further information, please contact:
Per Hillström, Head of Investor Relations, per.hillstrom@ssab.com, phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
viktoria.karsberg@ssab.com, phone: +46 72 233 5288
This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CET on January 29, 2025.
SSAB is a Nordic and US-based steel company that builds a stronger, lighter and more sustainable world through value added steel products and services. Working with our partners, SSAB has developed SSAB Fossil-free™ steel and plans to reinvent the value chain from the mine to the end customer, largely eliminating carbon dioxide emissions from our own operations. SSAB Zero™, a largely carbon emission-free steel based on recycled steel, further strengthens SSAB’s leadership position and our comprehensive, sustainable offering independent of the raw material. SSAB has employees in over 50 countries and production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. Join us on our journey! www.ssab.com, Facebook, Instagram, LinkedIn, X and YouTube.
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