18.07.2022 | Reading-time: 2 min

Swiss Steel Group posts significant profit growth

Lucerne - Swiss Steel Group significantly increased profits in the second quarter of 2022 to 47 million euros in comparison with 31 million euros in the same quarter of the previous year. Adjusted EBITDA also rose at the steel company, leaping from 65 million euros in the second quarter of 2021 to 96 million euros as at the end of June 2022. 

The Lucerne-based steel company Swiss Steel Group has increased adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to 171 million euros in the first half-year of 2022. In the same period of 2021, adjusted EBITDA amounted to 110 million euros, as detailed by a press release. The consolidated result also rose in the first six months of this year to 74 million euros, up from the total of 35 million euros in the same period of the previous year.

This growth can be put down to a stable international market environment despite rising costs for energy and raw materials in addition to major fluctuations. The business group has been able to pass on these increased costs to customers, according to the information in the press release. Margins have additionally improved across all product groups.

Swiss Steel Group was able to post significant profit growth despite a decline in the overall sales volume. Due to the discontinuation of operations at the steelwork in Ugine in France, the company sold 457 kilotons of steel in the second quarter of 2022 as against 518 kilotons in the same quarter of the previous year.

For the second half of 2022, Swiss Steel Group expects “a slight decline in margins in the near term and somewhat lower market demand” on account of lower scrap prices and geopolitical instability.

Swiss Steel Group