Swedish steelmaker SSAB AB on Friday posted a bigger-than-expected rise in second-quarter net profit, driven by high steel prices.
SSAB said all units posted strong results during the quarter, with good demand for high-strength steel in most markets while customer demand for fossil-free steel continues to increase.
However, the company said the market outlook is uncertain, due to rising inflation, component shortages and bottlenecks in logistics chains, among other things. There are also risks for disruptions relating to sanctions and other fallout from the war in Ukraine, it said.
Second-quarter net profit rose to 8.02 billion Swedish kronor ($787.2 million) from SEK3.22 billion a year earlier as sales rose 50% to SEK35.52 billion.
Analysts polled by FactSet had expected net profit of SEK7.56 billion on sales of SEK34.81 billion.
Shipments of special steels are expected to be somewhat lower in the third quarter than the second quarter, while prices are expected to be stable.
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