Comments on the report

Third quarter

The Group’s consolidated net sales for the period decreased by -22 percent compared to last year and amounted to SEK 1,187 M (1,514). The decline is mainly attributable to falling steel prices and weak demand, particularly in the construction sector within Swedish operations and sales of long products, while demand from the manufacturing sector and OEM customers remains steady.

Falling steel prices and mix effects had a negative impact on net sales of -21 percent. The tonnage decreased by -6 percent, of which business area Sweden & Poland saw a decrease of -17 percent while Finland & Baltics rose by 5 percent. Currency effects were positive at 5 percent.

A downward price trend and lower demand contributed to a decrease in gross profit to SEK 99 M (173) which resulted in a gross margin of 8.3 percent (11.5). The operating result amounted to SEK -42 M (40), corresponding to an operating margin of -3.5 percent (2.6). Adjusted for inventory losses of SEK -40 M (-27) and items affecting comparability of SEK -6 M (-), the underlying operating result amounted to SEK 4 M (67). During the period, the underlying operating margin amounted to 0.3 percent (4.4).

First nine months

During the first nine months, the Group’s net sales decreased by -23 percent compared to last year and amounted to SEK 4,151 M (5,403). This is explained by a negative organic tonnage growth of -14 percent, price and mix effects of -13 percent, partly compensated by positive currency effects of 5 percent. The organic tonnage growth in business area Sweden & Poland decreased by -17 percent and Finland & Baltics delivered -10 percent less. Sales of mainly long and flat products declined compared with the previous year. Gross profit amounted to SEK 430 M (958) with a gross margin of 10.4 percent (17.7).

The operating result amounted to SEK -15 M (537), corresponding to an operating margin of -0.4 percent (9.9). Adjusted for inventory losses of SEK -56 M (-1) and items affecting comparability of SEK -6 M (-), the underlying operating result amounted to SEK 47 M (538). During the period, the underlying operating margin amounted to 1.1 percent (10.0).