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 decreased by 10 percent in the second quarter compared to last year and amounted to SEK 610 M (675). The operating result amounted to SEK 22 M (34). Adjusted for inventory gains and losses, the underlying operating result amounted to SEK 23 M (27).

The tonnage in business unit Distribution Sweden was lower than the same period last year. Consequently, the business is showing an underlying operating result that is somewhat lower, largely due to the lower demand from the construction industry. Our joint venture AMBE delivered somewhat lower volume and result compared to last year.

Business unit Production Sweden & Poland is continuing to show improved profitability, due to higher sales and an improved gross margin mainly resulting from higher capacity utilization. Profit was improved further due to the continuous improvement work in the production unit in Norrköping and also Poland continues to contribute positively during the quarter.

First six months

Net sales for the first six months decreased by 5 percent compared to last year, amounting to SEK 1,253 M (1,326). Operating result amounted to SEK 52 M (74). Adjusted for inventory gains and losses of SEK -4 M (11), the underlying operating result amounted to SEK 56 M (63). Profit was weakened mainly due to lower profitability in Lecor and declining volume in the distribution business. Tonnage decreased by 3 percent compared to the same period in 2018.

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

*BE Group Produktion Eskilstuna has been reported under Parent Company and Group items since the fourth quarter of 2017. Comparative numbers have been restated.