SSAB reports a strong first quarter

SSAB today publishes its results for the first quarter of 2006. Profit after financial items amounted to SEK 1,558 (1,792) million, the second best first quarter ever reported. Cash flow for the quarter amounted to SEK 955 (562) million. - The strong profit combined with a largely unchanged working capital means that we are creating a cash flow of almost SEK 1 billion, notes CEO Anders Ullberg in a comment on the report. - Following an intermittently weak inflow of orders in the autumn, we have experienced a strong inflow of orders during the first quarter, with respect to both our core niche products and the rest of the product range. Deliveries of extreme high-strength sheet products during the quarter were 25% higher than last year and deliveries of quenched steels increased by 10%, continued Anders Ullberg. - We foresee continued strong demand for our core niche products, however, supply of quenched steels is limited by available production capacity. Thus, the Board of Directors today approved capital expenditures of SEK 770 million in order to increase quenched steel capacity by a further approx. 20% and thereby meet the growing demand from our customers, says Anders Ullberg. - Based on agreements that have been signed, our assessment for the second quarter is that the steel operations’ prices in local currencies will increase by 3%, concludes Anders Ullberg.