Comments on the report

Third quarter

The Group’s consolidated net sales for the period increased by 85 percent compared to last year, amounting to SEK 1,375 M (744). The increase is mainly explained by organic tonnage growth of 21 percent, positive price and mix effects of 65 percent and negative currency effects of -1 percent. Tonnage increased strongly compared to last year when the OEM customers and subcontractors to the automotive industry sharply reduced their operations in part of the third quarter as a result of the pandemic. The positive price effect is due to sharply rising steel prices.

Increased volumes, high steel prices and inventory gains contributed to an increased gross profit of SEK 316 M (105) corresponding to a gross margin of 23.0 percent (14.1). The operating result increased to SEK 219 M (4), corresponding to an operating margin of 15.9 percent (0.5). Adjusted for inventory gains and losses of SEK 26 M (-10), the underlying operating result increased to SEK 193 M (14). The underlying operating margin during the period increased to 14.0 percent (1.8) and the improvement is explained by increased tonnage in combination with high steel prices and improved gross margin.

First nine months

During the first nine months, the Group’s net sales increased by 39 percent compared to last year and amounted to SEK 3,878 M (2,797). Tonnage in business area Sweden & Poland increased by 26 percent compared to last year, while Finland & Baltics delivered 17 percent more. Rising steel prices and mix effects have affected net sales positively by 27 percent and the price trend has resulted in inventory gains. Gross profit increased to SEK 819 M (413) with a gross margin of 21.1 percent (14.8).

The operating result increased to SEK 463 M (21), corresponding to an operating margin of 11.9 percent (0.7). Adjusted for inventory gains and losses of SEK 69 M (-23) and items affecting comparability of SEK 0 M (-40), the underlying operating result increased to SEK 394 M (84). The underlying operating margin amounted to 10.1 percent (3.0) during the period.