Swedish steelmaker SSAB reported a smaller-than-expected fall in third-quarter operating profit on Wednesday, citing weak demand in Europe and a wider-than-usual seasonal slowdown.
Group operating profit fell 34% to 4.37 billion Swedish crowns ($393.74 million) in the July-September period, beating analysts' expectations of a fall to 3.73 billion crowns, according to LSEG data.
"The market in Europe was weak in the third quarter and demand is estimated to remain weak during the fourth quarter. The plate market in North America is estimated to continue to remain strong," SSAB said in a statement.
“Demand for high-strength steel also weakened in the third quarter, particularly in Europe, and forecasts for the fourth quarter remain weak,” it added.
Earlier this year, the company announced cost cuts of around 500 million crowns, of which around 200 million are considered "structural" cuts.
“Measures include temporary and permanent layoffs, the use of time banks, a restrictive approach to recruitment and other fixed costs,” CEO Martin Lindqvist said in a statement on Wednesday.
Swedish SSAB's third-quarter profit beat forecasts
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Azovpromstal® 25 October 2023 г. 11:30 |
