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.
Net sales decreased by 27 percent in the second quarter compared to last year and amounted to SEK 447 M (610). The lower sales is attributable to a decrease in tonnage by 22 percent at the same time as the steel prices were lower. The operating result amounted to SEK 12 M (20). Adjusted for inventory gains and losses of SEK -2 M (-1), the underlying operating result amounted to SEK 14 M (20).
The Swedish operations provided a weaker underlying operating result compared to last year. The volume decreased considerably and is mainly due to lower demand from subcontractors in the automotive industry as a result of Covid-19. Due to efficiency enhancements and improved gross margin, our joint venture AMBE provided a higher operating result compared to last year, despite a lower volume and decline in demand from the automotive industry.
The Polish operation and Lecor Stålteknik are showing improved profitability as a result of efficiency improvements and higher capacity utilization.
First six months
Net sales for the first six months decreased by 20 percent compared to last year, amounting to SEK 1,005 M (1,253). Operating result amounted to SEK -13 M (46) and was impacted by items affecting comparability of SEK -35 M (-), related to the decision to centralize warehousing and production operations in Norrköping and to close the warehouse in Malmö, which was communicated during the first quarter. Adjusted for inventory gains and losses of SEK -7 M (-4) and items affecting comparability of SEK -35 M (-), the underlying operating result amounted to SEK 30 M (50). Profit decreased mainly due to declining volume in the Swedish operations and the effect of Covid-19.
|uEBIT, SEK M|| |
|Sales growth, %