BUSINESS AREA SWEDEN

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige AB and the joint venture ArcelorMittal BE Group SSC AB, operating in the thin sheet segment.

Second quarter

Net sales decreased by 4 percent during the second quarter compared to last year and amounted to SEK 570 M (590). The decline is explained by a decrease in tonnage of 2 percent and negative price and mix effects of 2 percent.

The operating result increased to SEK 15 M (-242). Adjusted for inventory gains of SEK 9 M (2) and items affecting comparability of SEK 0 M (-243), the underlying operating result increased to SEK 7 M (-2) and the underlying operating margin increased to 1.1 percent (-0.4).

The Swedish market continued to be characterized by weak activity in the construction segment and price pressure in parts of the distribution market. At the same time, activity among several major OEM customers developed positively during the quarter, while demand from parts of the subcontractor supply chain remained cautious. Sales of reinforcing steel increased from low levels, indicating a gradual improvement in certain areas of construction-related demand.

The joint venture AMBE improved its operating result compared with the previous year, driven by higher steel prices, increased tonnage, and improved gross margin.

First six months

Net sales for the first six months decreased by 10 percent compared to last year, amounting to SEK 1,107 M (1,223). The decline is explained by a decrease in tonnage of 8 percent and negative price and mix effects of 2 percent. The operating result increased to SEK 20 M (-242). Adjusted for inventory gains of SEK 12 M (-4) and items affecting comparability of SEK 0 M (-243), the underlying operating result increased to SEK 8 M (4) and the underlying operating margin increased to 0.7 percent (0.3).