Year-end report for 2021: Strong finish to a record year
January 28, 2022 7:30 CET 6 min read
The fourth quarter · Revenue was SEK 27,337 (16,988) million · EBITDA was SEK 7,753 (1,439) million · Operating profit was SEK 6,961 (557) million · Earnings per share were SEK 5.30 (0.33) · Net cash was SEK 2.3 billion (net debt of SEK 10.3 billion) · The Board proposes a dividend of SEK 5.25 (0.00) per share for 2021
Comments by the CEO – strong finish to a record year
The full year 2021 was the best in SSAB’s history with record results posted by all divisions. Most of this improvement was driven by high steel prices. Internal performance was good during the year, with high production stability and improved safety results. During the year, SSAB strengthened its position as the driving force in the green transition in the steel industry.
Operating profit for the fourth quarter of 2021 increased to SEK 6,961 (557) and full-year earnings rose to a record high SEK 18,837 (-325) million. Net cash flow was strong and amounted to SEK 12.4 (2.2) billion for the full year and with net cash of SEK 2.3 billion, the Group is now debt free. The product mix was improved during the year in line with our strategic targets. SSAB Special Steels increased shipments to 1.46 (1.13) million tonnes and SSAB Europe increased its share of premium products to 43% (38%).
SSAB Special Steels’ operating profit for the fourth quarter increased to SEK 1,540 (518) million and the operating margin to 23.5% (12.7%). SSAB’s high-strength steels support, among other things, our customers’ sustainability strategies and their aim to improve productivity and sustainability performance in machinery and other equipment.
SSAB Europe’s operating result for the fourth quarter increased to SEK 3,301 (83) million and the operating margin to 26.5% (1.1%). SSAB Americas’ operating result increased to SEK 2,188 (18) million and the operating margin increased to 35.6% (0.5%).
Our focus on health and safety work and a stable production level have delivered good results and LTIF decreased to 1.8 (3.7) during 2021. Covid-19 continues to cause problems and we have introduced further measures since the turn of the year to limit the spread.
The outlook for the first quarter of 2022 is basically positive, albeit with continued uncertainty due to a shortage of components at several of our customers, as well as bottlenecks in logistics chains, not least in the light of the growing spread of Covid-19.
SSAB is leading the green transition of the steel industry through the unique HYBRIT initiative, which SSAB is driving forward together with its partners. Demand for fossil-free steel is showing strong growth and it is against this background that SSAB’s Board took a strategic decision to transform the Nordic strip production and accelerate the company’s green transition. The plan is to replace the existing production system with so-called mini-mills, which will result in a broader product program and improved cost position. The ambition is to eliminate virtually all carbon dioxide emissions 15 years earlier than the original plan announced earlier. However, for this to be done, the necessary infrastructure must be in place in time, as well as access to fossil-free electricity.
SSAB invites you to a presentation of the year-end report for 2021 at 9.30am CET on Friday, January 28, 2022. The briefing will take place by combined webcast and conference call that will be webcast on SSAB’s website.
The year-end report will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Leena Craelius. The briefing will be held in English.
Time of briefing: Friday, January 28, 2022 at 9.30am CET.
Sweden: +46 856 6426 51
United Kingdom: +44 3333 0008 04
United States: +1 6319 1314 22
Conference ID: 15079489#
Link to webcast: https://edge.media-server.com/mmc/p/3ecu833c
For further information, please contact:
Investor Relations: Per Hillström, Head of IR, firstname.lastname@example.org, +46 70 2952 912
Media: Viktoria Karsberg, Head of Corporate Identity and Group Communications, email@example.com, +46 8 4545 734
This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CET on January 28, 2022.