Financing
During the year, a financing agreement was signed regarding part of the investment in the new quenching line in Mobile, Alabama. The financing is for USD 161 million and extends for 30 years, but due to the contract terms is classified as a short-term debt. If the financing was treated as a 30-year term, the average term to maturity on the loan portfolio would be 4.8 years. As of December 31, the loan is booked at SEK 1,087 million. Of this sum, SEK 116 million has been utilized, while the remaining SEK 971 million is held in escrow.
As of December 31, the term to maturity on the total loan portfolio averaged 3.3 (3.5) years with an average fixed interest period of 0.7 (0.9) years. Of the loan portfolio of SEK 19,763 (18,876) million, short-term commercial paper accounted for SEK 1,334 (2,601) million. In December 2010, Standard & Poor’s lowered SSAB’s long-term credit rating from BBB- to BB+, based on their view of the overall steel industry. The down-grade has had only a minor negative impact on interest expenses for existing financing.
Equity
Following the addition of profit for the year of SEK 552 million attributable to the Company’s shareholders and other comprehensive income of SEK -1,184 million (primarily comprising translation differences), and after deduction of a dividend of SEK 324 million, the shareholders’ equity in the Company amounted to SEK 29,885 (30,841) million, equal to SEK 92.26 (95.21) per share.
Profitability and the net debt/equity ratio in relation to targets are presented in diagrams under the heading Financial targets.
Dividend
The Board proposes that the Annual General Meeting issue a dividend of SEK 2.00 (1.00) per share, equal to SEK 648 (324) million. For considerations relating to proposed allocation of profit, see Note 30.
| Consolidated balance sheet |
|
|
|---|---|---|
| SEK millions | 31 Dec 2010 |
31 Dec 2009 |
| Assets |
|
|
| Goodwill | 18,643 | 19,701 |
| Other intangible assets | 4,309 | 5,374 |
| Tangible fixed assets | 17,063 | 17,137 |
| Participations in affiliated companies | 395 | 348 |
| Financial assets | 77 | 55 |
| Deferred tax receivables | 159 | 164 |
| Total fixed assets | 40,646 | 42,779 |
| Inventories | 11,389 | 8,221 |
| Accounts receivable | 5,057 | 4,435 |
| Current tax receivables | 742 | 667 |
| Other current receivables | 1,905 | 665 |
| Cash and cash equivalents | 1,314 | 3,652 |
| Total current assets | 20,407 | 17,640 |
| Total assets | 61,053 | 60,419 |
|
|
|
|
| Equity and liabilities |
|
|
| Equity for shareholders in the company | 29,885 | 30,841 |
| Minority shares | 191 | 161 |
| Total equity | 30,076 | 31,002 |
| Deferred tax liabilities | 4,952 | 5,283 |
| Other long-term provisions | 254 | 550 |
| Long-term interest-bearing liabilities | 16,786 | 14,878 |
| Total long-term liabilities | 21,992 | 20,711 |
| Current interest-bearing liabilities | 2,977 | 3,998 |
| Current tax liabilities | 200 | 96 |
| Accounts payable | 4,048 | 3,063 |
| Other current liabilities | 1,760 | 1,549 |
| Total current liabilities | 8,985 | 8,706 |
| Total equity and liabilities | 61,053 | 60,419 |
