Key data 2013 2014 2015
Shipped tonnage, thousands of tonnes 126 86 69
Net sales, SEK M 947 776 648
Change, % 5 -18 -16
Operating result (EBIT), SEK M1) -26 -49 -100
Operating margin, % -2,7 -6,4 -15,4
Underlying operating result (uEBIT), SEK M -25 -28 -26
Underlying operating margin, % -2,6 -3,6 -3,9
Investments, SEK M 15 2 3
Average number of employees 190 168 171

1) The operating result for 2014 has been impacted negatively by non-recurring costs of SEK -21 M mainly related to write-down of assets of SEK -20 M. The operating result for 2015 has been impacted negatively by write-down of assets of SEK -74 M.

Other Units consists of BE Group’s operations in Poland, the Czech Republic and Slovakia, as well as the Swedish companies Lecor Stålteknik and BE Group Produktion Eskilstuna. The operations in the Czech Republic and Slovakia primarily conduct distribution operations, while the other operations are production units. Other Units accounted for 15 percent (18) of BE Group’s net sales in 2015.

Development over the year

Net sales for the business area fell by 16 percent to SEK 648 M (776). The decrease is mainly attributable to the Czech and Slovakian markets where demand is weak and the companies are also very cautious in terms of credit risk. The operating result decreased to SEK -100 M (-49). The change is attributable to write-down of goodwill of SEK -50 M in Lecor Stålteknik and SEK -4 M in BE Group Produktion Eskilstuna, and SEK -20 M in the Czech Republic attributable to tangible assets. After the write-down, goodwill remains in an amount of SEK 17 M in Lecor Stålteknik and SEK 0 M in BE Group Produktion. The impairment loss in the Czech Republic is linked to the building in Ostrava where the greatest part of the Company’s operations are conducted. The book value after the write-down is SEK 38 M, which corresponds to assessed market value. Adjusted for non-recurring items and inventory losses, the underlying operating result amounted to SEK -26 M (-28).

Czech Republic and Slovakia

BE Group’s operations in the Czech Republic consists of a warehouse facility in Ostrava and a production plant in Prerov. The operations in Slovakia consist of two warehouse facilities located in Michalovce and Martin. In 2015, the operations in these two countries were integrated with for example joint management. The production site in Prerov specializes in cutting bars to length, primarily stainless steel and other alloy steels. The business otherwise consists mainly of inventory sales of plates to the engineering industry. During the year, an effort was made to develop the product range towards more high-quality plates, which is a niche where there is less competition and the possibility of higher margins is deemed to be greater. The market trend has been weak and the companies have observed extensive caution regarding credit risk. Altogether, this led to sales decreasing by one fourth. Overhead costs have decreased, but have not fully compensated for the lower sales, which has entailed worse earnings than the previous year.

Poland

BE Group’s operations in Poland consist of a production plant in Trebaczew in southern Poland. The facility conducts cutting, bending and simpler processing of plates. Over the year, work continued on developing a local customer base as a complement to the production performed for the Swedish and Finnish markets, as well as on reducing costs. The activities have been successful and it has been possible to shift some business and thereby improve the margin. Sales decreased somewhat compared with the previous year, but the gross profit is higher due to better margins and lower overhead costs.

BE Group Produktion Eskilstuna

BE Group Produktion Eskilstuna specializes in advanced processing of plates for customers in the engineering sector. During the year, a number of new deals were won and considerable focus has been placed on preparing serial production of new products. Although serial production of the new products had not yet begun during the year, the company’s sales and earnings increased.

Lecor Stålteknik

Lecor Stålteknik, whose operations are located in Kungälv, Sweden, broadens the Group’s offering by providing prefabricated steel structures for construction and industrial projects. The year had a weak start due to a small order backlog at the beginning of the year. During the year, resources were added to the sales and project manager side as a part of improving the company’s opportunities to win new deals. This has had an impact and the second half of the year was significantly better in terms of sales and earnings. Altogether, sales ended up below the previous year.

Continued development

Despite reduced sales, the underlying result improved somewhat, but losses remained high. All companies except those in the Czech Republic and Slovakia show better results compared with the previous year, which indicates that we are on the right track. The work of developing a local customer portfolio will continue in the Polish market and for Lecor Stålteknik, higher sales are in focus. For BE Group Produktion, serial production of new products will begin and at the same time new business should be won and put into production. In the Czech Republic and Slovakia, the year was devoted to reducing risk exposure and in the upcoming year, focus will be on increasing margins and results.

Sales by business solution
(previous year)
Sales
SEK M
Operating result (EBIT)
SEK M

*The operating result for Q4 2014 is cleared from write-down of assets of SEK -20 M. The operating result including write-down of assets amounts to SEK -26 M.

**The operating result for Q3 2015 is cleared from write-down of assets of SEK -74 M. The operating result including write-down of assets amounts to SEK -81 M.