Steel Swiss Steel again in the red
The struggling steel manufacturer Swiss Steel had to contend with dwindling demand in the first half of 2024. Sales volumes and turnover fell significantly, leaving the bottom line in the red.
14.08.2024, 07:54
SDA
Revenue fell by 25.7 percent to 1.38 billion euros in the first half of the year, as Swiss Steel announced on Wednesday. Excluding the divested Ascometal, the decline was 20 percent to 1.30 billion. Demand from the automotive sector in particular remained subdued.
Sales volumes in the first half of the year amounted to 572 kilotons, which corresponds to a decline of 6.2 percent compared to the same period of the previous year. Meanwhile, the average price of steel sold fell by 10.8 percent to EUR 2194 per ton, which Swiss Steel attributes to lower raw material and electricity costs.
In operational terms, Swiss Steel achieved a profit of CHF 71.7 million at EBITDA level, with this result benefiting from positive one-off effects of CHF 92.6 million. On an adjusted basis, this resulted in a loss of 20.9 million, following a profit of 70 million euros in the same period of the previous year. At the bottom line, the company remained in the red with a loss of 4.1 million, following a loss of 30 million in the previous year.
Growth not until 2025
Looking ahead, Swiss Steel is confronted with a persistently difficult environment. Demand is likely to remain "volatile and restrained" in the second half of the year, it says. The growth expected for 2024 is not likely to start until next year. However, the implementation of the 2025 strategy program is on track, according to the company.
