BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and Lecor Stålteknik, as well as the Polish operation BE Group Poland.

Second quarter

Net sales increased by 28 percent in the second quarter compared to last year and amounted to SEK 675 M (529). Operating result improved to SEK 34 M (27). Adjusted for inventory gains and losses of SEK 7 M (3) and items affecting comparability, the underlying operating result increased to SEK 27 M (20).

The distribution business in Sweden delivered an underlying operating result in line with last year. The volume increased but our joint venture with Arcelor Mittal generated weaker result than anticipated, while we also had some negative currency effects. Price pressure in thin sheets is the main cause of the lower profitability in our joint venture. Business unit Production Sweden & Poland shows good development and delivered an improved underlying operating result. Volume growth in both tonnage and sales is leading to better capacity utilisation. Positive price and mix effects have also contributed to the development.

First six months

Net sales increased by 24 percent in the first six months compared with last year and amounted to SEK 1,326 M (1,072). Operating result amounted to SEK 74 M (-57). Adjusted for inventory gains and losses of SEK 11 M (15) and items affecting comparability, the underlying operating result amounted to SEK 63 M (42). The stronger result was mainly due to improvement measures in the production site in Norrköping and in Lecor. Tonnage increased by 9 percent compared with the same period in 2017.

Business Area Sweden & Poland, sales growth and underlying operating result per quarter*

*Comparative numbers have been restated with regards to BE Group Produktion Eskilstuna.