(Reuters) -Swedish steelmaker SSAB reported a smaller than expected fall in first-quarter earnings on Wednesday, sending its shares up by more than 4%.
SSAB, which operates steel businesses on both sides of the Atlantic, said it expected second-quarter shipments to be "somewhat higher" thanks to improving demand in Europe.
The group increased production and deliveries in the first quarter, compensating for lower realised prices.
Its operating profit for the the three months to March 31 was 4.73 billion Swedish crowns ($459.5 million), beating the 3.49 billion crowns forecast by analysts, Refinitiv data shows.
"Very strong Q1," JPMorgan (NYSE:JPM) said, highlighting the performance of SSAB Americas.
Although demand in China continues to be relatively low, SSAB said it expects stable demand overall during the second quarter.
It forecast that second-quarter shipments by its Special Steels and European divisions would be "somewhat higher" than the previous quarter, while shipments at the Americas division were expected to be stable.
It expects raw material costs to be in line with, or "somewhat lower", than the previous quarter, adding that interest rates and rampant inflation remain worries in the second half of the year, especially in Europe.
On Monday SSAB peer Salzgitter reported an earnings plunge in preliminary first-quarter results, citing high energy costs and moves towards more climate-friendly production.
SSAB's report said it sees strong demand for steel without any carbon footprint. The group remains committed to a shift towards carbon-free metals production and said in March that it expects the green push to boost its annual profit by at least 10 billion crowns from 2030 onwards.
($1 = 10.2948 Swedish crowns)