BUSINESS AREA SWEDEN

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige AB and the joint venture ArcelorMittal BE Group SSC AB, operating in the thin sheet segment.

First quarter

Net sales decreased by 15 percent and amounted to SEK 537 M (633). The decline is explained by a decrease in tonnage of -14 percent and negative price and mix effects of -1 percent.

The operating result increased to SEK 5 M (0), despite currency exchange losses of approximately SEK -3 M (4). Adjusted for inventory gains and losses of SEK 3 M (-6), the underlying operating result amounted to SEK 2 M (6).

The Swedish operation was affected by continued weak demand, particularly within the construction segment, where the cold winter delayed construction starts. Demand from the manufacturing industry was low in the subcontractor segment, while larger OEM customers showed a more positive development.

The joint venture AMBE improved its operating result compared with the previous year. Rising steel prices and a strengthened gross margin compensate for lower volumes in a continued challenging market.