Steelmaker SSAB beats earnings forecast aided by improved Americas business

[STOCKHOLM] Swedish steelmaker SSAB reported a bigger-than-expected rise in its fourth-quarter operating profit on Wednesday (Jan 28), helped by improved earnings from its Americas business.

Operating earnings rose to 756 million Swedish kronor (S$108.1 million) in the quarter from October to December, from 487 million kronor in the same period in 2024. Analysts were expecting 606.1 million kronor on average, a poll by SSAB showed.

The company makes specialised high-strength steel used in cars, construction machinery and agricultural equipment, and has production facilities on both sides of the Atlantic.

Chief executive officer Johnny Sjostrom said in the earnings statement: “So far, there have been limited direct impacts of the US steel tariffs, as SSAB is well-positioned with its premium strategy and significant local production in the US.”

Steel and aluminium were among the first targets of US President Donald Trump’s trade measures. These imports from most countries have been subject to duties raised 50 per cent since June.

SSAB shipped 1.5 million tonnes of steel in the final quarter of the year, and said that it expected shipments in the first quarter to be higher than that, thanks to seasonally better demand.

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The company added that it expected the European Union’s Carbon Border Adjustment Mechanism (CBAM) to improve the supply-demand balance in the European market.

The CBAM tightens rules on high-emission imports such as steel, and cracks down on attempts to evade the levy.

SSAB proposed an annual dividend of 2 kronor a share, 23 per cent lower than the 2.6 kronor it had paid out last year. REUTERS