Sweden's SSAB reported more-than-expected profits as steel prices rose.
Swedish steelmaker SSAB reported a larger-than-expected increase in first-quarter earnings due to strong steel prices on Tuesday, but said the outlook for demand and shipments is beset with some uncertainty.
The specialized high-strength steelmaker made a record profit last year, thanks to rising steel prices and strong production at production sites in Sweden, Finland and the United States moving into 2022.
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The niche steelmaker said operating profit excluding extraordinary items rose to SEK 8.38 billion ($864 million) from 1.99 billion a year ago, beating analysts Refinitiv's estimate of 6.66 billion.
The company said in a statement that it saw an "extraordinary" surge in demand in the first quarter due to constraints on steel supplies after Russia's invasion of Ukraine, which Moscow has dubbed a "special military operation."
"Steel demand is expected to normalize in the second quarter of 2022 and therefore at a slightly lower level than in the first quarter," the company said. said.
"Uncertainties remain regarding the lack of components as well as bottlenecks in logistics chains."
The Swedish steelmaker warned in early February that repairs after an unplanned outage at one of its blast furnaces in Raahe, Finland would cut its first-quarter earnings by around 600 million crowns.
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