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The steady-state solution of electromagnetic-field problems in ferromagnetic materials is given. The effects of magnetic saturation and hysteresis are included. The solution is based on the differential diffusion equation assuming variable complex magnetic permeability. A precise formula is given to calculate the total power losses due to eddy currents and hysteresis. Computed curves, together with measured curves, are given for active and reactive losses in mild steel. Good agreement is obtained between measured and computed values.