The operating profit fell to 1,351 million kronor for the first quarter, compared to the profit of 3,157 million kronor for the same period last year.
Weaker demand and lower prices are causing the profit decline.
Revenues fell to 25.5 billion kronor, compared to 27.1 billion kronor a year earlier.
But the ongoing trade war is not a major blow to SSAB, at least not yet. Much of the sales in the USA are produced locally.
Not so trade-sensitive
So we are not so sensitive to import tariffs in the USA, says Johnny Sjöström.
However, SSAB is affected by Canada's counter-tariffs on the USA, since the steel conglomerate sells a lot of American-made steel to the northern neighbor. Therefore, the company has started to redirect the flows from the Nordic region to Canada instead.
Secures loan
Demand may weaken as general uncertainty spreads among customers. But the SSAB CEO describes the steel industry as broad. Among heavier industrial customers, activity is quite good. However, it is significantly heavier in the automotive industry.
But we don't sell that much to the automotive industry, says Sjöström.
SSAB announces at the same time that it has secured a loan of 2.3 billion euro for the transition to fossil-free steel production. And the transformation of the business is following plan, according to Sjöström.
