STOCKHOLM (Reuters) – Swedish steelmaker SSAB said on Friday that the European market had stabilised after a slump during the second half of last year as the company reported adjusted fourth-quarter operating earnings in line with market expectations.
Operating profit at SSAB, which operates niche steel business on both sides of the Atlantic, came in at 3.77 billion crowns versus a year-ago 6.96 million, just lagging the 3.82 billion seen by analysts according to Refinitiv data.
Steelmakers like SSAB benefited from brisk demand through much of last year but have faced growing signs of weakness in Europe, the region hardest hit by the energy crisis stemming from the war in Ukraine.
Soaring energy costs, rampant inflation and industrial supply chain problems remain lingering issues. SSAB said it had adjusted production in the face of a cautious European steel market and brought forward maintenance in the quarter.
“The assessment is that the market has stabilised, although there is continued uncertainty,” the company said in a statement.
The company also said it was making an impairment charge of 33.3 billion Swedish crowns ($3.23 billion) related to goodwill due to increased interest rates and a more prudent method in impairment testing.
The charge would not affect cash flow nor SSAB’s ability to pursue its dividend policy, it said. The company proposed hiking its annual dividend to 8.70 crowns per share from a year-ago 5.25 crowns and sought authorisation for share buybacks.
($1 = 10.2952 Swedish crowns)
(Reporting by Niklas Pollard, editing by Terje Solsvik)
