Capital expenditures
During the year, decisions were made regarding new capital expenditures totaling SEK 1,772 (572) million, of which SEK 753 (0) million involved strategic investments. Capital expenditure payments during the year amounted to SEK 2,012 (1,912) million, of which SEK 1,170 (944) million involved strategic capital expenditures. For further description of the investments, see the sections for the different business areas.
Liquidity
The operating cash flow for the full year was negatively affected by an increase in working capital, primarily due to an increased inventory value, and amounted to SEK -212 (4,868) million.
Cash flow before financing and dividend amounted to SEK -2,460 (2,474) million. The year’s negative cash flow was also affected by a non-recurring item in the form of a payment of SEK 591 million under warranty undertakings regarding tax to the purchaser of the tubular business. Following dividend and translation effects on debts in foreign currency, net debt during the year increased by SEK 2,273 million. As of December 31, the net debt amounted to SEK 17,587 (15,314) million. The net debt/equity ratio was 58 (49) percent.
| Operating cash flow/change in net debt | ||
|---|---|---|
| SEK millions | 2010 | 2009 |
| SSAB EMEA | -1,736 | 2,113 |
| SSAB Americas | 1,421 | 1,464 |
| SSAB APAC | 162 | 141 |
| Tibnor | 42 | 725 |
| Other 1) | -101 | 425 |
| Operating cash flow | -212 | 4,868 |
| Financial items 2) | -392 | -538 |
| Taxes 3) | -127 | -943 |
| Cash flow from current operations | -731 | 3,387 |
| Strategic investments | -1,170 | -944 |
| Divestment of businesses and operations 2) | -559 | 31 |
| Cash flow before dividend and financing | -2,460 | 2,474 |
| Dividend | -324 | -1,296 |
| Translation differences on debt against equity (hedge) 3) | 599 | 475 |
| Currency translation, etc. | -88 | 25 |
| Change, net debt (increase-/decrease+) | -2,273 | 1,678 |
1) Previous year included payment received for sold emission rights.
2) For 2010, the item comprises a payment of SEK 591 million under warranty undertakings regarding tax to the purchaser of the tubular business.
3) Revaluation for hedging of currency risk in foreign operations.
| The Group’s liquidity preparedness | ||
|---|---|---|
| SEK millions | 31 Dec 2010 | 31 Dec 2009 |
| Cash and cash equivalents | 1,314 | 3,652 |
| Commited credit facilities | 12,205 | 15,198 |
| Liquidity preparedness | 13,519 | 18,850 |
| -as a percentage of annual sales (%) | 34 | 63 |
| Less commercial paper | -1,334 | -2,601 |
| Liquidity preparedness excluding commercial paper | 12,185 | 16,249 |
| -as a percentage of annual sales (%) | 31 | 54 |
