Comments on the report

Second quarter

The Group’s consolidated net sales for the period decreased by 31 percent compared to last year, amounting to SEK 1,406 M (2,044). The decline is explained by organic tonnage growth of -18 percent, price and mix effects of -17 percent and divestments of -1 percent, partly compensated by positive currency effects of 5 percent. The economic slowdown and rising interest rates have contributed to reduced demand and a sharp slowdown in the construction industry, while demand from the manufacturing industry and OEM customers remains stable.

Reduced demand and lower steel prices combined with the sale of high priced inventory, pressured gross profit to SEK 172 M (458) which resulted in a gross margin of 12.3 percent (22.4). The operating result amounted to SEK 26 M (312), corresponding to an operating margin of 1.9 percent (15.3). Adjusted for inventory gains and losses of SEK -7 M (22), the underlying operating result amounted to SEK 33 M (291). During the period, the underlying operating margin amounted to 2.4 percent (14.2).

Steel prices in the second quarter were relatively stable, resulting in the gross margin improving by 2 percentage points compared with the first quarter.

First six months

During the first six months, the Group’s net sales decreased by 24 percent compared to last year and amounted to SEK 2,964 M (3,889). Tonnage in business area Sweden & Poland decreased organically by -24 percent and Finland & Baltics delivered -12 percent less. Gross profit amounted to SEK 331 M (785) and the gross margin amounted to 11.2 percent (20.2).

The operating result amounted to SEK 27 M (497), corresponding to an operating margin of 0.9 percent (12.8). Adjusted for inventory gains and losses of SEK -16 M (26), the underlying operating result amounted to SEK 43 M (471). During the period, the underlying operating margin amounted to 1.5 percent (12.1).