BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and the joint venture ArcelorMittal BE Group SSC AB. The closure of the Polish unit was completed during the second quarter.

Second quarter

Net sales decreased by 9 percent in the second quarter compared to last year and amounted to SEK 594 M (653). The decrease is explained by negative price and mix effects of -9 percent, closure of the Polish unit of -2 percent while the organic tonnge increased by 2 percent, driven by increased demand from the construction sector. The operating result amounted to SEK -240 M (-1). Adjusted for items affecting comparability of SEK -240 M (-), of which goodwill of SEK -219 M and inventory gains and losses of SEK 2 M (-7), the underlying operating result amounted to SEK -2 M (6).

The Swedish operations provided a negative underlying operating result. The lower demand from the manufacturing industry, particularly the automotive industry, and lower steel prices resulted in a continous low gross margin. During the second quarter, the closure of the unit in Arvika was completed and operations has been moved to the main facility in Norrköping. The closure will have an ongoing positive effect on the result.

The move of the Polish operations to Sweden and Finland was completed during the second quarter. The closure is estimated to have a payback period of less than one year.

Our joint venture AMBE provided an increased operating result due to increased volumes and strenghtened gross margin despite lower steel prices.

First six months

Net sales for the first six months decreased by 9 percent compared to last year, amounting to SEK 1,234 M (1,350). The decline is explained by negative price and mix effects of -10 percent, closure of the Polish unit of -2 percent while the organic tonnage increased by 3 percent, driven by increased demand from the construction sector. Operating result amounted to SEK -240 M (24). Adjusted for items affecting comparability of SEK -240 M (-) and inventory losses of SEK -4 M (-20), the underlying operating result amounted to SEK 4 M (44).