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.

First quarter

Net sales decreased by -12 percent in the first quarter compared to last year and amounted to SEK 697 M (790). The decrease is explained by negative price and mix effects of -7 percent and a decrease in organic tonnage of -5 percent driven by decreased demand on rebar to the construction sector. The operating result increased to SEK 25 M (2). Adjusted for inventory losses of SEK -13 M (-18), the underlying operating result increased to SEK 38 M (20).

The Swedish operations provided a stronger underlying operating result compared to last year. Decreased tonnage in the construction sector was compensated by a strengthened gross margin as a result of more stable prices and good demand from the manufacturing industry. The Polish operations provided higher volume but a weaker operating result due to lower steel prices and gross margin compared to last year.

Our joint venture AMBE provided a stronger operating result compared to last year. Lower steel prices and decreased tonnage was compensated by strengthened gross margin and reduced inventory losses.