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STOCKHOLM: Swedish steel maker SSAB (SSABa.ST) reported a bigger-than-expected jump in quarterly earnings on Friday on strong steel prices, but cautioned that the market outlook was uncertain amid rising inflation and supply chain strains.

SSAB said second-quarter operating profit, excluding extraordinary items, rose to a record 10.40 billion crowns ($1.02 billion) from 4.08 billion a year ago to beat a mean forecast of 9.10 billion, according to Refinitiv analysts’ estimates.

The company is specialised in high-strength steels and has seen profits soar over the past year on the back of surging steel prices and strong output at its production plants in Sweden, Finland and the United States.

The company said in a statement it expected shipments to fall back in the third quarter in both European and Americas arms due to planned maintenance outages and seasonality, while prices were also expected to decline.

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