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SSAB Downgrades Fourth Quarter Earnings Outlook
12/27/2010 - Lower shipments and production curtailments will negatively impact fourth quarter operating profit for SSAB.
SSAB announced last week that its operating profit will be close to zero for the fourth quarter 2010 due to the negative impact of lower shipments and lower production.
The company noted that demand in Europe had weakened at a faster-than-anticipated rate toward the end of the fourth quarter. In addition, a disruption in production at one of the blast furnaces in Oxelösund further contributed to a decline in earnings. Production at this blast furnace is expected to return to full operation in another few weeks.
Based on the weak market outlook for the fourth quarter, SSAB took the opportunity to bring forward part of a maintenance outage at its plant in Mobile, Ala., which was previously scheduled for the first quarter of 2011.
Taken together, the company said the negative impact of these factors have it expecting to show an operating profit of close to zero for the fourth quarter.
Based on the weak market outlook for the fourth quarter, SSAB took the opportunity to bring forward part of a maintenance outage at its plant in Mobile, Ala., which was previously scheduled for the first quarter of 2011.
Taken together, the company said the negative impact of these factors have it expecting to show an operating profit of close to zero for the fourth quarter.
Looking ahead, however, the company said that incoming orders for delivery during the first quarter have improved significantly vs. orders for delivery in the current quarter. Based on the order book for SSAB Americas, the company anticipates full production during the first quarter of 2011, despite a somewhat weaker outlook in Europe.
SSAB is a leading international producer of high strength steels, offering products developed in close cooperation with its customers. SSAB has employees in more than 45 countries, with production plants in Sweden and the United States.
