[ad_1]
The SSAB steel manufacturer has decided to invest around SEK 1 billion in the company's steel plant in Mobile, Alabama. "It eliminates bottlenecks in production," writes SSAB.
The investment is expected to increase segregated steel production capacity while reducing costs.
"The investment was made over the period 2019-2021, increasing the annual capacity of Q & T to Mobile from 300,000 to 400,000 tons." Alongside the cost savings, the repayment period is estimated at less than four years, "writes the company.
The investment is mainly geared towards three areas; shaping, blasting and painting, as well as delivery capacity.
"This eliminates bottlenecks in production," writes SSAB, which calculates the repayment period of the investment over more than four years.
SSAB expects North American demand for coarse hardwood to remain strong in the fourth quarter.
Even in Europe, demand is expected to remain good, but with some seasonal slowdown towards the end of the year. For high strength steels, demand is expected to remain strong in the fourth quarter.
For the Americas business sector, deliveries in Q4 are expected to be lower than in the third quarter, due to a major maintenance outage in Montpellier.
For the Europe business segment, shipments are expected to increase sequentially in the fourth quarter, after seasonal effects had a negative impact in the third quarter.
For Special steels, deliveries are expected to be slightly lower in the last three months of the year due to maintenance shutdowns at Oxelösund.
Prices realized in the fourth quarter are expected to be slightly higher for Americas and Special Steels compared to the third quarter. For Europe, realized prices are expected to be slightly lower in the fourth quarter due to a seasonally lower product mix, the company said.
The operating profit of SSAB amounted to 1,387 million SEK for the third quarter of 2018.
According to the forecasts of 14 analysts established by Infront Data, expectations should rise to 1,648 million SEK.
Products include non-recurring items of -213 million SEK. We expected -7.4 million. Adjusted operating profit amounted to SEK 1,600 million compared to the planned 1,655 million.
Profit before tax is high at SEK 1,234 million for the third quarter. On average, analysts reported pre-tax profit of SEK 1,447 million.
Sales amounted to SEK 19,038 million for the period. In this case, the average forecast of Infront Data was 18,858 million euros.
[ad_2]
Source link
