Comments on the report

Second quarter

The Group’s consolidated net sales for the period decreased by 10 percent compared to last year and amounted to SEK 1,272 M (1,406). The decline is explained by negative price and mix effects of -12 percent and closure of business of -3 percent partly compensated by organic tonnage growth of 5 percent. Steel prices were relatively stable compared with the first quarter. Tonnage to the manufacturing industry increased organically by 4 percent. Tonnage to the construction segment increased organically by 9 percent compared to low levels last year.

Lower steel prices and a weak demand, especially from the construction sector led to a decrease in gross profit to SEK 152 M (172), resulting in a gross margin of 12.0 percent (12.3). The operating result amounted to SEK 11 M (26), corresponding to an operating margin of 0.8 percent (1.9). Adjusted for inventory losses of SEK -7 M (-7), the underlying operating result amounted to SEK 18 M (33). The underlying operating margin for the period amounted to 1.4 percent (2.4).

The second quarter included four fewer trading days compared with the first quarter. The level of activity was higher in the second quarter and average delivered tonnage per trading day rose 8 percent compared with the first quarter.

First six months

During the first six months, the Group’s net sales decreased by 13 percent compared to last year and amounted to SEK 2,577 M (2,964). This is explained by negative price and mix effects of -9 percent, closure of business of -2 percent and decreased organic tonnage of -2 percent. Tonnage in business area Sweden & Poland decreased by -1 percent and Finland & Baltics delivered organically -2 percent less. Gross profit amounted to SEK 317 M (331) and the gross margin increased to 12.3 percent (11.2).

The operating result amounted to SEK 15 M (27), corresponding to an operating margin of 0.6 percent (0.9). Adjusted for items affecting comparability of SEK -27 M (-) and inventory losses of SEK -18 M (-16), the underlying operating result increased to SEK 60 M (43). During the period, the underlying operating margin increased to 2.3 percent (1.5).