Steely results

Swedish steelmaker SSAB has announced pre-tax third-quarter results ahead of forecasts, but reports an expected fall in sales for the fourth quarter.

Profits after tax were up 202 per cent to £155.7m with cash flow from operations at £72.3m, an increase of 62 per cent.

The company’s North American operations made a significant impact on the positive results contributing to more than 30 per cent of total sales.

Analysts described the cash flow for the quarter as ‘satisfactory’ considering the negative impact of payment on retroactive price increases of raw material.

Olof Faxander, chief executive of SSAB, said: ’It is our assessment that there will be a decrease in our volumes for the rest of the year. It appears that the prices of our niche products will continue to be stable while the prices of our commercial steels are expected to decrease slightly.’

Faxander said that the company has not decided on formal production cuts despite current market uncertainty, but would adapt production to suit demand.