BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and BE Group Produktion Arvika, as well as the Polish operation BE Group Poland. Lecor Stålteknik was divested on July 1, 2022.

Third quarter

Net sales increased by 20 percent in the third quarter compared to last year and amounted to SEK 757 M (629). The higher sales is explained by positive price and mix effects of 22 percent, acquisitions of 9 percent counteracted by negative organic tonnage growth of -11 percent. The operating result amounted to SEK 26 M (94). Adjusted for inventory gains and losses of SEK -15 M (17), the underlying operating result amounted to SEK 41 M (77).

The Swedish operations provided a weaker underlying operating result compared with the strong previous year. The earnings trend is mainly attributable to decreased volumes from construction customers and a changed price trend, resulting in a lower gross margin. Our joint venture AMBE provided a lower operating result due to decreased demand and falling prices on thin sheets.

In the Polish operations profitability improved as a result of higher steel prices and a strenghtened gross margin.

The final purchase price for the acquisition of shares in BE Group Produktion Arvika, former Goodtech Solutions Manufacturing AB, amounted to SEK 10 M. Take-over was on September 1. The acquisition mainly adds production capacity and affects the underlying result marginally positive during the year.

Lecor Stålteknik was divested on July 1.

First nine months

Net sales for the first nine months increased by 40 percent compared to last year, amounting to SEK 2,631 M (1,881). Sales growth is mainly explained by higher steel prices while tonnage decreased by -4 percent including acquisitions. Operating result increased to SEK 232 M (186). Adjusted for inventory gains of SEK 9 M (46), the underlying operating result increased to SEK 223 M (141).