Comments on the report

First quarter

Consolidated net sales for the period decreased by 2 percent compared to last year, amounting to SEK 1,205 M (1,226). The decline is primarily attributable to the relatively weaker growth in the Baltic distribution business and Lecor Stålteknik.

Gross profit amounted to SEK 166 M (187), with a gross margin of 13.8 percent (15.3). The operating result amounted to SEK 34 M (55), corresponding to an operating margin of 2.8 percent (4.5). The earnings development is mainly due to the continued weak performance in the Finnish production unit, where corrective measures have been implemented. In addition, the Swedish distribution business delivered a lower result, which is explained by the first quarter in 2018 being comparatively strong. Adjusted for inventory gains and losses of SEK -6 M (7), the underlying operating result was SEK 40 M (48). The underlying operating margin during the period was 3.3 percent (3.9).