.jpg?lang=en-US&ext=.jpg)
-(1).gif?width=220&height=200&mediaprotectionhash=8011a71ede637cd523c67b1296fc49e6151560fde821a46f29cc85998cc76615&ext=.gif)
SSAB Reports Strong Growth, Complete Integration of Ipsco
10/30/2007 - SSAB reported strong third-quarter results, including profit before depreciation (EBITDA) and non-recurring items of SEK 2,956 (1,289) million.. Sales amounted to SEK 13,686 (7,020) million, of which SEK 5,838 million is attributable to the acquisition of the North American steel company, Ipsco.
SSAB reported strong third-quarter results, including profit before depreciation (EBITDA) and non-recurring items of SEK 2,956 (1,289) million.. Sales amounted to SEK 13,686 (7,020) million, of which SEK 5,838 million is attributable to the acquisition of the North American steel company, Ipsco.
According to the company, the single most important event during the quarter was completion of the Ipsco acquisition. The company said that a great deal of work was expended during the quarter to bring the two companies together, and Ipsco is now organizationally fully integrated into SSAB. The company says its acquisition of Ipsco lays the foundations for continued strong growth for its niche products.
“The first stage in the merger of SSAB and Ipsco has now been successfully completed,” said SSAB’s CEO, Olof Faxander. “The work on achieving synergies is underway and proceeding according to plan. SSAB’s and Ipsco’s management teams have developed an extremely positive cooperation which made possible a successful integration process.”
“In terms of earnings, Ipsco is performing as we had anticipated, apart from the fact that we have witnessed a certain weakening due to inventory liquidation by North American pipe customers during 2007,” said Faxander.
As a consequence of its acquisition of Ipsco, SSAB’s results before tax include non-recurring items of SEK -1,271 million. These items relate primarily to the allocation of the goodwill that has arisen in conjunction with the transaction. Excluding these charges, SSAB’s results had shown a strong earnings trend with an increased proportion of core niche products.
In August, SSAB carried out a new issue of SEK 10 billion as part of the financing of the acquisition. Interest was extremely strong among current and new shareholders, both in Sweden and internationally.
