Comments on the report

First quarter

The Group’s consolidated net sales for the period decreased by -16 percent compared to last year and amounted to SEK 1,305 M (1,558). The decline is explained by negative price and mix effects of -10 percent and a decrease in organic tonnage of -7 percent. Currency effect contributed positively with 1 percent. Steel prices were relatively stable compared with the fourth quarter. The construction segment remained weak, which primarily affects the Swedish operations. Demand in the manufacturing industry and from the Swedish OEM customers remains solid. It is somewhat weaker in Finland, partly due to the impact of the political strike, which led to fewer trading days and therefore decreased tonnage.

Despite lower volumes, more stable steel prices and steady demand from the manufacturing industry, with relatively higher prices and margins compared with the construction segment, contributed to gross profit rising to SEK 165 M (159), resulting in a gross margin of 12.6 percent (10.2). The operating result amounted to SEK 4 M (1), corresponding to an operating margin of 0.3 percent (0.0). Adjusted for inventory losses of SEK -11 M (-9) and items affecting comparability of SEK -27 M (-), the underlying operating result increased to SEK 42 M (10). The underlying operating margin for the period increased to 3.2 percent (0.6).