BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland, which is under closure.

First quarter

Net sales decreased by 8 percent in the first quarter compared to last year and amounted to SEK 640 M (697). The decrease is explained by negative price and mix effects of -10 percent while the organic tonnge increased by 3 percent, driven by increased demand from the construction sector. The operating result amounted to SEK 0 M (25). Adjusted for inventory losses of SEK -6 M (-13), the underlying operating result amounted to SEK 6 M (38).

The Swedish operations provided a weaker underlying operating result compared with the previous year. The lower demand from the manufacturing industry, particularly the automotive industry, and lower steel prices resulted in the gross margin remaining low. BE Group Produktion Arvika, a subsidiary of BE Group Sweden, was phased out during the quarter.

The closure of the unit in Poland, which was communicated at the end of November, is proceeding according to plan and will be concluded during the second quarter. The closure is estimated to have an ongoing positive effect with a payback period of less than one year.

Our joint venture AMBE provided a weaker operating result compared to last year. Increased tonnage is counteracted by lower steel prices, a lower gross margin and increased inventory losses.