Q3-Q4 19: the low point?
Q3 19 results were below our and the street’s estimates No drama, but the weakening of the macro context is now being felt Q4 is set to look quite similar, prompting a downward revision of our numbers The key issue is now the start of FY20, on which visibility is still low
23 Oct 19
Q2 19: down a tick more than expected
SSAB’s Q2 results were decent, albeit lower than expectations Iron-ore prices and a weakening European demand were the key factors The Q3 outlook is rather cautious Valuation ratios look rather cheap, but investors will be happy to wait until visibility improves
19 Jul 19
Results a tick under consensus, with a decent outlook though
FY18 results: revenues reached SEK74,941m (+13.4%), EBITDA SEK8,952m (+17.9%), EBIT SEK5,181m 3,838m (+35%) and net profit SEK3,805m (+65%). Net cash flow was SEK3,435m, leading to a net debt at the end of 2018 of SEK8.6bn (vs SEK10.2bn in Q3, SEK11.9bn in Q2 and SEK11.6bn at year-end 17) compared to a target of SEK10bn. The dividend proposed is SEK1.50, significantly higher than in 2017 (SEK1.00). In terms of outlook, the tone is rather positive for Q1, with demand expected to remain fairly stable in Europe and strong in the US for heavy plate. Global demand for high-strength steel is expected to remain strong.
29 Jan 19
Q3 18 OK; outlook is somewhat reassuring, at least so far
Q3 in line with expectations. Market trends still supportive for Q4, despite macro-econmic turbulences. Deleveraging continues and allows for capacity expansion in the US. Despite the low visibility into FY19, our numbers are unlikely to change materially and our recommendation will remain the same.
26 Oct 18
Q2 18: fairly good, but the market had (too?) high expectations
Q2 revenues reached SEK19,263m (+12.6%), EBITDA SEK2,582m (+19.2%), EBIT SEK1,630m (+35.2%) and net profit SEK1,313m (+48%). Net debt at the end of Q1 was SEK11.9bn (vs SEK11.4bn in Q1 and SEK11.6bn by year-end 2017). The outlook for Q3 calls for an unchanged strong demand for heavy plate in North America, with a seasonal slowdown in Europe. As a result, shipments will be up at SSAB Americas and down in Europe, with prices higher in Americas and Special Steels and unchanged in Europe.
20 Jul 18
Q1 18: about fine, but nothing more than that
Q1 18 results: not bad, no reason to be over-excited though. Revenues reached SEK17,388m (+10.4%), EBITDA SEK1,836m (+12.8%), EBIT SEK916m (+30.4%) and net profit SEK502m (+33.5%). Net debt at the end of Q1 was SEK11.4bn (vs SEK11.6bn at year-end 2017, SEK17bn in FY16 and SEK23.3bn a year ago, i.e. pre capital increase). Looking into Q2, shipments are expected to be somewhat higher during Q2 compared to Q1 in strip and heavy plate, while Special Steel could be flat or somewhat down. It is anticipated that prices realised by SSAB during the second quarter “will be higher during the second quarter compared with the first quarter, particularly for SSAB America”.
20 Apr 18
Q3 17 in line and deleveraging continues
SSAB’s Q3 17 highlights: revenues reached SEK16,188m (+20.1%), EBITDA SEK2,016m (+23.3%), EBIT SEK1,089m (vs SEK707m) and net profit SEK583m (vs SEK591m). Net debt at the end of Q3 was SEK13,994m (vs SEK15,738m at the end of H1 17 SEK17,887m at year-end 2016). In terms of outlook, the group expects Q4 shipments to be in line with Q3, although prices could be somewhat lower due to SSAB America and a seasonally weaker mix in Europe.
25 Oct 17
Q1 17 well in line
Revenues reached SEK15,739m (+21%), EBITDA SEK1,627m (x2.2), EBIT SEK702m (vs SEK-193m) and net profit SEK502m (vs SEK-133m). Net debt at the end of Q1 was SEK17bn (vs SEK17.9bn in FY16 and SEK23.3bn a year ago (pre capital increase). Looking into Q2, shipments are expected to be somewhat higher during Q2 compared to Q1. It is anticipated that prices realised by SSAB during the second quarter “will increase compared to the prior quarter, however mitigated by increased raw material costs”.
21 Apr 17
FY16 in line; some hope going forward
SSAB’s FY16 results. Sales reached SEK55,544m (-2.7%), EBITDA SEK4,951m (+38%), operating profit SEK1,213m (vs SEK-243m) and net income SEK943m (vs SEK-505m). Net debt at the end of FY16 amounted to SEK17,887m (vs SEK23,156m in FY15). No dividend will be proposed. In terms of outlook, the group expects a good level of demand in both North America and Europe for Q1 17, with lower imports into the US. Overall, prices are expected to be on the rise compared to Q4.
15 Feb 17
Q3 16 in line; some hopes on prices but Q4 to be softer
SSAB released Q3 results. Revenues reached SEK13,477m (-1%), EBITDA SEK1,635m (x2.2), EBIT SEK707m (vs SEK-191m) and net profit SEK591m (vs SEK-285m). Over 9 months, revenues reached SEK40,912m (-9.1%), EBITDA SEK3,885m (+12.3%), EBIT SEK1,106m (vs SEK635m) and the net result SEK870m (vs SEK167m). Net debt at the end of Q3 was SEK18.2bn (vs SEK18.4bn in H1 and SEK23.1bn by year-end 15 (pre-capital increase)).
28 Oct 16
H1 16: not bad; let’s not get too excited though
Sales reached SEK27,435m (-10.8%), EBITDA SEK2,329m (-15.2%), EBIT 468m (-44.7%), net income SEK491m (-30.5%). These figures exclude « items affecting comparability », which are now quite low though (SEK-79m in H1 16 vs SEK-39m in H1 15 at the operating level). Operating cash flow reached SEK1,228m (vs SEK2,246m), mainly achieved in Q2 (SEK1,151m) and net cash flow SEK415m.
22 Jul 16
Conditions of the rights issue
The group will proceed with a rights issue of Class B shares amounting to c.SEK5bn with preferential rights for existing shareholders in SSAB. Shareholders in SSAB are entitled to subscribe for 7 new B shares for 8 old A and/or B shares held. The subscription price is SEK 10.50 per share. For subscriptions to shares that will be registered with Euroclear Finland and listed on Nasdaq Helsinki, the subscription price is to be paid in euros based on the European Central Bank EUR/SEK reference rate on 31 May 2016. The subscription price in euros will be announced via a press release on or about 31 May 2016.
24 May 16
SSAB’s uninspiring Q1 16 and a SEK5bn rights issue
Sales reached SEK12,964m (-16.1%), EBITDA SEK764m (-50.%), operating income SEK -190m (vs SEK564m) , net profit SEK-131m (vs SEK314m). Operating cash-flow reached SEK77m (vs SEK784m last year). The group expects stable demand in Q2 with slightly higher prices. Net debt at the end of Q1 stood at SEK23,213m vs 23,156 (at the end of FY15).
22 Apr 16
FY15: nothing to dream about; decent cash flow though
SSAB released FY15 results. Sales reached SEK56,864m (-5.4% pro forma), EBITDA SEK3,655m (-13.3%), operating income SEK-128m (vs SEK1,005m), and a net result of SEK-400m (vs SEK112m). On a clean basis, adding back items affecting comparability, EBITDA would be SEK3,541m and operating profit SEK-242m. Net debt at year-end 2015 reached SEK23,156m (vs SEK24,674m in FY14). No dividend will be proposed. The group also annnounced a workforce reduction (465 or c.3%) to be negotiated before April.
12 Feb 16
SSAB’s 9m numbers: a bit weak
Sales reached SEK44,365m (+36.2%), EBITDA SEK3,498m (+4.3%), operating profit SEK674m (-13%), and the net result SEK-206m (-45%). As reminder, Ruukki is consolidated since 29 July 2014. Also remember that these numbers exclude "items affecting comparability", mainly write-downs and restructuring charges (SEK-39m in 9m 2015 and SEK-261m on operating profit in 9m 2014). Net debt at the end of Q3 amounted to SEK24,814m (SEK24,018m in H1). The group also announced it will initiate negotiations to reduce the workforce in Finland (i.e. in former Ruukki) by 295 people which compares to 2,900 in Ruukki and 16,000 overall (i.e. 2%).
22 Oct 15
H1 15 results: decent but earnings recovery is postponed…
SSAB release H1 15 results. Sales reached SEK30,771m (+3.2% on a pro-forma basis for FY14, i.e. consolidating Ruukki), EBITDA up +30% to SEK2,747m, EBIT more than doubling to SEK865m (vs SEK423m) and, finally, net reaching SEK491m vs SEK-19m). Note these numbers exclude "items affecting comparability" in both 2015 and 2014, but these items were almost zero in both reporting periods (the bulk of the costs being in H2 14). Net debt reached SEK24,018m at the end of H1 15 (down SEK656m on year-end 2014).
22 Jul 15