Lasse Levola

Business Area Manager Finland

Key data 2013 2014 2015
Shipped tonnage, thousands of tone 168 172 178
Net sales, SEK M 1,619 1,715 1,745
Change, % -14 6 2
Operating result (EBIT), SEK M 14 32 21
Operating margin, % 0.9 1.9 1.2
Underlying operating result (uEBIT),
SEK M		 29 40 30
Underlying operating margin, % 1.8 2.3 1.7
Investments, SEK M 21 4 9
Average number of employees 360 340 332

In 2015, the business area accounted for a total of 42 percent (41) of BE Group’s net sales. The organization in Finland consists of production and warehousing facilities in Lapua, Lahti and Turku and sales offices in nine locations. Business Area Finland also includes the operations in the Baltic States, comprising warehousing and sales units in Tallinn, Riga and Kaunas.

In the Finnish market, the Company has around 2,800 customers and the ten largest customers account for about 11 percent of the Company’s sales. Focus is on providing value-creating services mainly to the engineering industry and the market position is strong. This combined with BE Group Finland running its own steel service center for cutting and slitting of thin sheets and coils means that there is a higher proportion of production service than for Business Area Sweden. The primary competitors are Tibnor, Kontino and Flinkenberg.

In the Baltic countries, the market is more diversified and conditions vary substantially between Estonia, Latvia and Lithuania, but BE Group generally has a strong and growing position in the area.

Sales and business performance

Business Area Finland’s sales rose 2 percent compared with the previous year, amounting to SEK 1,745 M (1,715). This increase is mainly attributable to a 3-percent increase in shipped tonnage, as well as positive currency effects of about 3 percent, which is offset by lower prices. The distribution market in Finland decreased by between one to two percent compared with the previous year. In the Baltic States, our assessment is that demand is in line or somewhat higher than the previous year.

The operating result decreased to SEK 21 M (32) and the underlying operating result, adjusted for inventory losses and non-recurring items, to SEK 30 M (40). The lower earnings is a result of lower prices and a lower gross margin.

Continued development

Focus is on continued growth in 2016. The Company will continue building on its strong position in processing of flat products, where it is an important partner to the Finnish engineering industry. In addition, the Company is working on developing its offering and strengthening its position in stainless steel and aluminum. As in the Swedish market, there is reason to work on margin-improvement measures.

Sales by business solution
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Sales
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Operating result (EBIT)
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