SAAB Americas Has Strong Quarter Despite Challenging Market

SSAB reports a relatively weak steel market in the US in first quarter due primarily to high inventory levels at distributors and imports that pressured prices in the North American market. Despite challenging market conditions, sales at SSAB Americas rose 24 percent year over year to $407.8 million (SEK 3,508 million). Sales were relatively unchanged from fourth quarter due to an improved product mix offsetting lower volumes. EBITDA for Q1 was $52.7 million (SEK 453 million).

SSAB Americas shipments were down 4 percent to 476,000 tonnes (525,692 tons) from 496,000 tons (545,737 tons) in Q1 2014. Steel service center demand was weak due to destocking and imports but demand in Heavy Transport remained good driven by demand for tank cars. Steel prices fell by 6 percent from fourth quarter 2014.