FINLAND & BALTICS
The business area includes the Group’s operations in Finland and the three Baltic countries.
Compared to the third quarter last year, net sales were 20 percent lower and amounted to SEK 408 M (511). The lower sales is attributable to a decrease in tonnage by 11 percent at the same time as steel prices were lower. The operating result amounted to SEK 13 M (15). Adjusted for inventory gains and losses of SEK -6 M (2), the underlying operating result improved to SEK 19 M (14).
The Finnish operations delivered, despite lower sales mainly as a result of Covid-19, an improved underlying operating result. Decreased tonnage and lower steel prices are compensated by a higher gross margin through an improved customer and product mix and increased efficiency in production operations. The Baltic operations delivered a weak underlying operating result due to decreased activity among our largest customers as a result of Covid-19.
First nine months
Net sales for the first nine months decreased by 12 percent compared to last year, amounting to SEK 1,460 M (1,661). The lower sales is explained by a decrease in tonnage of 7 percent at the same time as steel prices were lower. The operating result marginally decreased to SEK 46 M (48) and was impacted by items affecting comparability of SEK -5 M (-) related to the decision to centralize warehousing and production operations in the Baltics, which was communicated during the second quarter. Adjusted for the items affecting comparability and inventory gains and losses of SEK -12 M (-1) the underlying operating result increased to SEK 63 M (49). This development is mainly attributable to an increased gross margin and efficiency in the production operations in Finland.
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