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.
Net sales decreased by 14 percent in the third quarter compared to last year and amounted to SEK 467 M (543). The operating result amounted to SEK 9 M (19). Adjusted for inventory gains and losses of SEK 0 M (4), the underlying operating result amounted to SEK 9 M (15).
The distribution business in Sweden delivered a weaker underlying operating result compared to last year. The volume decreased at the same time as our joint venture with Arcelor Mittal generated a marginally better result. The production business in Sweden & Poland also showed weaker development and delivered a significantly lower underlying operating result. Lower volume and margin pressure in some segments contributed to this development. Lecor Stålteknik delivered a result of SEK -3 M (-2) mainly attributable to lower sales.
Decision was taken in the beinning of the quarter to make significant investments of approximately SEK 60 M at the site in Norrköping. The investments are expected to give competitive advantages after being taken into operation in 2020. In connection with the investment decision the existing rental agreement for the Norrköping site was extended to 2029.
First nine months
Net sales for the first nine months decreased by 8 percent compared to last year and amounted to SEK 1,720 M (1,869). Operating result amounted to SEK 61 M (93). Adjusted for inventory gains and losses of SEK -4 M (15), the underlying operating result amounted to SEK 65 M (78). The result weakened mainly due to the declining sales volume and tonnage decreased by 5 percent compared with the same period in 2018. For the first nine months, Lecor Stålteknik delivered a result of SEK -9 M (-1).
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*BE Group Produktion Eskilstuna has been reported under Parent Company and Group items since the fourth quarter of 2017. Comparative numbers have been restated.