STOCKHOLM--Swedish steelmaker SSAB AB on Tuesday posted a bigger-than-expected rise in first-quarter net profit, driven by high steel prices.
The company said the war in Ukraine has driven up both raw material and steel prices and that order intake rose temporarily during the first quarter as customers wanted to ensure supply of steel. Demand for steel during the second quarter of 2022 is expected to normalize, it added.
SSAB said all units posted strong results, more than offsetting the impact of an unplanned stop in a blast furnace in Raahe, Finland, production disruptions in SSAB Americas and higher raw-material costs.
The company said first-quarter net profit rose to 6.01 billion Swedish kronor ($618.9 million) from SEK1.51 billion a year earlier, as sales rose 61% to SEK31.58 billion.
Analysts polled by FactSet had expected net profit of SEK5.47 billion on sales of SEK28.23 billion.
"SSAB directly ceased sales to Russia and Belarus and discontinued new purchases of ore and coal from Russia until further notice," Chief Executive Martin Lindqvist said.
"Several measures have been introduced to ensure access to raw materials, but there is a risk of disruptions related to sanctions and other fallout from the war in Ukraine."
SSAB has minor operations in Ukraine through its Ruukki Construction unit, and the company said it is assisting employees and their families with transport and accommodation, to leave the war zones and go to Poland and other nearby countries.
