BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige, BE Group Produktion Arvika, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland. Lecor Stålteknik was divested on July 1, 2022.

Second quarter

Net sales decreased by 33 percent in the second quarter compared to last year and amounted to SEK 690 M (1,032). The decline is explained by organic tonnage growth of -24 percent, price and mix effects of -8 percent and acqusitions and divestments of -1 percent. The operating result amounted to SEK 11 M (130). Adjusted for inventory gains and losses of SEK -10 M (17), the underlying operating result amounted to SEK 20 M (113).

The Swedish operations provided a weak underlying operating result compared with the previous year, which is a direct consequence of a sharp decrease in demand in the construction industry and lower steel prices resulting in a gross margin under continued pressure. In the second quarter, there was a modest increase in steel prices compared with the first quarter, which led to a slightly better gross margin.

Our joint venture AMBE delivered slightly lower volumes and operating result. This was due to lower steel prices compared with the previous year. Slightly higher steel prices compared with the first quarter strengthened the gross margin.

First six months

Net sales for the first six months decreased by 21 percent compared to last year, amounting to SEK 1,480 M (1,874). The decline is explained by organic tonnage growth of -18 percent and price and mix effects of -3 percent. Operating result amounted to SEK 13 M (206). Adjusted for inventory gains and losses of SEK -28 M (24), the underlying operating result amounted to SEK 40 M (182).