The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and Lecor Stålteknik, as well as the Polish operation BE Group Poland.

Third quarter

Net sales increased by 20 percent in the third quarter compared to last year and amounted to SEK 543 M (454). The operating result improved to SEK 19 M (15). Adjusted for inventory gains and losses of SEK 4 M (-2) the underlying operating result decreased to SEK 15 M (16).

The distribution business in Sweden generated a weaker underlying operating result compared with the previous year. The volume increased, but our joint venture with Arcelor Mittal generated weaker results at the same time that we have seen some price pressure on long products and reinforcement. The production business in Sweden & Poland showed good development and delivered an improved underlying operating result. Volume growth led to better capacity utilization. Positive price and mix effects also contributed to the development.

First nine months

Net sales increased by 22 percent in the first nine months compared with last year and amounted to SEK 1,869 M (1,526). Operating result amounted to SEK 93 M (72). Adjusted for inventory gains and losses of SEK 15 M (10) and items affecting comparability, the underlying operating result amounted to SEK 78 M (58). The result has strengthened mainly due to continous improvement measures in the production site in Norrköping and in Lecor. Tonnage increased by 9 percent compared to the same period in 2017.

Business Area Sweden & Poland, sales growth and underlying operating result per quarter*

*BE Group Produktion Eskilstuna has been reported under Parent Company and Group items since the fourth quarter of 2017. Comparative numbers have been restated.