Reuters scoops on Swedish steelmaker SSAB, shares drop

Shares of Swedish specialty steel maker SSAB opened 6 percent lower after Reuters was alone on Nov. 10 with news that the firm had cut output at a top site in Sweden and was considering other cuts as it grapples with a downturn in demand. Reuters won the story through trade union contacts. SSAB also said fourth-quarter demand looked weaker than expected, a rare insight from a company that rarely comments on developments between earnings reports. The story was widely picked up by competing media, and one trader later said it amounted to a profit warning. JP Morgan slashed earnings forecasts and cut its recommendation on the stock to neutral from overweight.