Sweden's SSAB Q3 profit beats forecasts despite slowdown
STOCKHOLM, Oct 25 (Reuters) - Swedish steelmaker SSAB (SSABa.ST) reported a smaller than expected drop in third-quarter operating profit on Wednesday, citing weak demand in Europe and a more pronounced than normal seasonal slowdown.
The group's operating profit fell by 34% to 4.37 billion Swedish crowns ($393.74 million) in the July to September quarter, beating the 3.73 billion crowns expected by analysts on average, according to LSEG data.
"The market in Europe was weak during the third quarter and the assessment is that demand will remain subdued during the fourth quarter. The heavy plate market in North America is assessed to continue at a good level," SSAB said in a statement.
"Demand for high-strength steel also weakened during the third quarter, especially in Europe, and the fourth quarter outlook remains weak," it added.
The company earlier this year announced cost cuts of some 500 million crowns, with around 200 million of this seen as "structural" cuts.
"Measures include temporary and permanent layoffs, use of working hours banks, a restrictive approach to recruitment and other fixed costs," CEO Martin Lindqvist said in a statement on Wednesday.
Reporting by Marta Frąckowiak, editing by Terje Solsvik
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