BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige, BE Group Produktion Arvika, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland.

Third quarter

Net sales decreased by -28 percent in the third quarter compared to last year and amounted to SEK 540 M (757). The decreased sales is explained by organic tonnage growth of -17 percent and price and mix effects of -12 percent. Sales of long products mainly decreased compared to last year. The operating result amounted to SEK -20 M (26). Adjusted for inventory losses of SEK -19 M (-15) and items affecting comparability of SEK -4 M (-), the underlying operating result amounted to SEK 3 M (41).

The Swedish operations provided a weak underlying operating result compared to last year as a result of reduced demand in the construction sector and declining steel prices which continued to pressure the gross margin. Our joint venture AMBE continued to provide a strong operating result as a consequence of high volumes and a strong gross margin.

In the Polish operations, the volume rose but the result was negative as a consequence of lower steel prices and a low gross margin.

First nine months

Net sales for the first nine months decreased by -23 percent compared to last year, amounting to SEK 2,020 M (2,631). The decline is explained by negative organic tonnage growth of -18 percent and price and mix effects of -5 percent. The decrease in tonnage is mainly explained by lower demand in the construction sector mainly affecting long products. Operating result amounted to SEK -7 M (232). Adjusted for inventory gains and losses of SEK -46 M (9) and items affecting comparability of SEK -4 M (-), the underlying operating result amounted to SEK 43 M (223).