BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige, BE Group Produktion Arvika, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland. Lecor Stålteknik was divested on July 1, 2022.

First quarter

Net sales decreased by 6 percent in the first quarter compared to last year and amounted to SEK 790 M (842). The decrease is explained by negative organic tonnage growth of -12 percent partly compensated by positive price and mix effects of 4 percent and acquisitions and divestments of 2 percent. The operating result amounted to SEK 2 M (76). Adjusted for inventory gains and losses of SEK -18 M (8), the underlying operating result amounted to SEK 20 M (69).

The Swedish operations provided a lower underlying operating result compared with the previous year, which is a direct consequence of decreased demand in the construction sector and falling steel prices resulting in a gross margin under continued pressure. The Polish operations provided an operating result in line with the previous year.

Our joint venture AMBE delivered more tonnage but had a lower operating result as a consequence of falling steel prices resulting in inventory losses.