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Swiss Steel Group: significant increase in earnings in the second quarter of 2022

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Author: Magnus Schwarz

Swiss Steel Group: significant increase in earnings in the second quarter of 2022
Slabs from the Swiss Steel Group (source: Swiss Steel Group)

Swiss Steel Group has increased the adjusted EBITDA to over EUR 96 million in the second quarter of 2022 (same quarter previous year – EUR 65 million) and EUR 171 million during the first half of 2022 (same period last year – EUR 110 million). The consolidated results for the second quarter of 2022 rose to EUR 47 million (same quarter previous year – EUR 31 million) and to EUR 74 million in the first half of 2022 compared to EUR 35 million in the same period last year.

The internationally stable market environment resulted in this earnings growth despite high volatilities and rising prices for energy and raw materials. Price increases were largely passed on customers. The margins of all products improved. The overall reduced sales volume of 457 kilotons (same quarter previous year – 518 kilotons) is in particular due to the stoppage of the steel mill in Ugine. Production at this mill specializing exclusively in stainless steel is ramping up since June 2022.

With the drop in the price of scrap noted at the end of the quarter as well as the overall instable geopolitical situation, it can be expected that there will be a slight decline in margins in the near term and somewhat lower market demand in the second half of the year. The material uncertainties of the energy sector in regard to price development and availability, particularly of natural gas, cannot currently be conclusively assessed.

Swiss Steel Group will publish half-year results for 2022 on August 16, 2022. Any adjustment of the previous outlook for the adjusted EBITDA of EUR 160 – 200 million for 2022 as a whole may be made in this context.