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 28 percent in the third quarter compared to last year and amounted to SEK 338 M (467). The lower sales is attributable to a decrease in tonnage by 21 percent at the same time as steel prices were lower. The operating result amounted to SEK -8 M (6). Adjusted for inventory gains and losses of SEK -4 M (0), the underlying operating result amounted to SEK -5 M (5).
The Swedish and Polish operations delivered a weaker underlying operating result compared to last year. Volume decreased significantly in the second quarter and demand continued to be weak in the third quarter both in the manufacturing and construction industries, mainly as a result of Covid-19. Thanks to efficiency measures and improved gross margins, our joint venture AMBE provided a higher operating result compared to last year, despite a lower volume. Lecor Stålteknik provided an operating result of SEK -2 M (-3), mainly due to low utilization in the production operations as some contracted projects were postponed by clients to upcoming quarters.
First nine months
Net sales for the first nine months decreased by 22 percent compared to last year, amounting to SEK 1,343 M (1,720). Operating result amounted to SEK -21 M (52) and was negatively impacted by items affecting comparability of SEK -35 M (-), related to the decision to centralize warehousing and production operations in Norrköping and to close the warehouse in Malmö, which was communicated during the first quarter. Adjusted for the items affecting comparability and inventory gains and losses of SEK -11 M (-4), the underlying operating result amounted to SEK 25 M (55). Profit decreased mainly as a result of declining volume in the Swedish operations due to reduced activity among our largest customers as an effect of Covid-19. For the first nine months, Lecor Stålteknik delivered a result of SEK 1 M (-9).
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|Sales growth, %