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.

Second quarter

Net sales decreased by 5 percent in the second quarter compared to last year and amounted to SEK 653 M (690). The decrease is explained by negative price and mix effects of -8 percent partly compensated by organic tonnage growth of 3 percent. The operating result amounted to SEK -1 M (11). Adjusted for inventory losses of SEK -7 M (-10), the underlying operating result amounted to SEK 6 M (20).

The Swedish operations provided tonnage growth of 4 percent but a weaker underlying operating result compared to last year. That as a result of lower steel prices and low demand within the construction sector, where above all rebar is burdening the gross margin. The Polish operations provided a negative operating result as a result of lower steel prices, somewhat lower volume and a continued pressured gross margin compared to last year.

Our joint venture AMBE provided a lower operating result. Gross margin was strengthened but was counteracted by reduced volumes and lower steel prices.

First six months

Net sales for the first six months decreased by 9 percent compared to last year, amounting to SEK 1,350 M (1,480). The decline is explained by negative price and mix effects of -8 percent and organic tonnage growth of -1 percent. Operating result increased to SEK 24 M (13). Adjusted for inventory losses of SEK -20 M (-28), the underlying operating result increased to SEK 44 M (40).