BUSINESS AREA SWEDEN

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige AB and the joint venture ArcelorMittal BE Group SSC AB, operating in the thin sheet segment.

Third quarter

Net sales decreased by 3 percent compared with the previous year and amounted to SEK 454 M (468). The decrease was attributable to 5 percent lower tonnage, partly compensated by positive price and mix effects.

The operating result amounted to SEK -10 M (-7). Adjusted for inventory gains of SEK 2 M (-3) and items affecting comparability of SEK 0 M (-3), the underlying operating result amounted to SEK -12 M (-1). The result was negatively affected by lower volumes, high production costs and a weaker Swedish krona.

In Sweden, demand remained weak in construction-related segments, while activity among several major industrial customers was more stable. Positive price and mix effects supported the margin, but lower volumes and high production costs limited the development of the result.

The joint venture ArcelorMittal BE Group SSC AB showed stable development in a market that remained cautious. Maintained margin discipline and an increased contribution to the result had a positive impact on the business area.

First nine months

Net sales for the first nine months decreased by 8 percent compared with the previous year and amounted to SEK 1,561 M (1,691). The decrease was mainly attributable to 7 percent lower tonnage. The operating result increased to SEK 10 M (-250). Adjusted for inventory gains of SEK 14 M (-7) and items affecting comparability of SEK 0 M (-246), the underlying operating result amounted to SEK -4 M (2), while the underlying operating margin decreased to -0.3 percent (0.1).