“Cash flow remained positive as a result of the positive earnings and good control of working capital”
Statement from the CEO
The business delivered a quarter with marginally lower sales compared to the same quarter last year and the underlying operating result decreased by SEK 8 M. During the quarter, we saw a weaker development mainly in the production business in Finland, the distribution business in the Baltics and Lecor Stålteknik where we have taken measures. The distribution business in Sweden also delivered a somewhat weaker result in the period as a result of an unfavourable channel and product mix. At the same time, the production businesses in Sweden and Poland were going strong in terms of both volume and profitability which partly compensated the lower result.
Steel prices generally remained stable in line with last quarter. However, what we see as a temporary decline in the price of aluminium and stainless steel resulted in inventory losses compared to gains last year.
Cash flow remained positive as a result of the positive earnings and good control of working capital. During the quarter, operating activities generated a positive cash flow of SEK 62 M (-1), of which SEK 20 M is an effect of the implementation of IFRS 16.
Demand in the next quarter is expected to remain strong in the company’s main markets. The steel prices are anticipated to stay at the same level as the first quarter and the prices of aluminium and stainless steel are expected to recover after the first quarter’s decline.
President and CEO
Bridge 2018-2019 operating result SEK M
|Brygga resultatutveckling 2018–2019. MSEK||Q1||Q2||Q3||Q4||jan-dec|
|Operating result 2018||Rörelseresultat 2018||55||22||33||22||132|
|Reversal of inventory gains (-)/losses (+)|| |
Återläggning lagervinster (-)/förluster (+)
|Items affecting comparability||Jämförelsestörande poster||–||16||–||-4||12|
|Underlying operating result 2018|| |
Underliggande rörelseresultat 2018
|Change in sales||Försäljningsförändring||-3||–||–||–||–|
|Change in underlying gross margin|| |
|Change in overhead costs||Omkostnadsförändring||0||–||–||–||–|
|Underlying operating result 2019|| |
Underliggande rörelseresultat 2019
|Reversal of inventory gains (+)/losses (-)|| |
Återläggning lagervinster (+)/förluster (-)
|Items affecting comparability||Jämförelsestörande poster||–||–||–||–||–|
|Operating result 2019||Rörelseresultat 2019||34||–||–||–||–|
Items affecting comparability in Q2 2018 is related to the exit of the operations in Prerov, Czech Republic, SEK -9 M is affecting the Group’s consolidated statement of comprehensive income while SEK -7 M refers to translation differences from previous fiscal years.