BUSINESS AREA
FINLAND & BALTICS

The business area includes the Group’s operations in Finland and the three Baltic countries. The operations in the Baltics is under closure.

Second quarter

Net sales during the second quarter decreased by 13 percent compared to last year and amounted to SEK 632 M (727). It is explained by negative price and mix effects of -15 percent and closure of business of -7 percent partly compensated by organic tonnage growth of 8 percent. The operating result amounted to SEK 11 M (16). Adjusted for inventory gains of SEK 0 M (2), the underlying operating result amounted to SEK 11 M (12).

The Finnish operations increased by 8 percent in tonnage but generated lower sales and underlying operating result compared to last year as a result of lower steel prices and continued pressured gross margin.

The closure of the operations in the Baltics that was announced at the end of March has progressed according to plan and will, in all material aspects, be concluded in the third quarter. The closure is expected to generate a positive cash flow of about SEK 30 M and will have a positive impact on the Group’s future earnings.

First six months

Net sales for the first six months decreased by 17 percent compared to last year, amounting to SEK 1,253 M (1,509). The decline is explained by negative price and mix effects of -12 percent, closure of business of -4 percent and organic tonnage growth of -2 percent partly compensated by positive currency effects of 1 percent. Operating result amounted to SEK -10 M (19). Adjusted for inventory gains of SEK 2 M (11) and items affecting comparability of SEK -27 M (-), the underlying operating result increased to SEK 15 M (6).

Organisation

Petteri Korpioja has been recruited as new Managing Director for the Finnish operations and will be a member of Group Management. Petteri will start in the beginning of November at the latest.