SSAB

SSAB

den 9 juni 2016

Important legal information

SSAB is a leading Swedish steel company founded in 1978 and headquartered in Stockholm. SSAB develop high-durability steels and steel with special property. The group is listed on the Nasdaq OMX Stockholm and employs as of end April 2016 about 17,000 people. The company has production plants in Finland, Sweden and the US, which allow annual productions capacity of 8,8 million tonnes steel. Moreover, SSAB has the capacity to process steel in China, Brazil and other countries.

SSAB’s EBITDA dropped in Q1 2016 to SEK 744 million in comparison EBITDA was SEK 1501 million in Q1 2015. According to the company, the low average prices for steel products affected profits negatively. However, prices started to move upwards toward the end of Q1 2016. SSAB expects the demand to remain stable in North America and Europe, which are the two main market of SSAB. Moreover, the company structurally reduces costs of SEK 2.8 billion through downsizing of corporate function and lowering cost position for special steel products. SSAB’s cost-cutting plan could support the share price. However, the future development remains to be seen.

Bloomberg consensus set the 12-month target price to SEK 21.71. As of 6 June 2016, the price per share was SEK 20.44 . Currently, 3 analysts set SSAB on BUY, 7 on HOLD and 12 on SELL recommendation.

 

 

2019-07-19 17:17:19