BUSINESS AREA
FINLAND & BALTICS
The business area includes the Group’s operations in Finland and the three Baltic countries. The Baltic unit is under closure.
Third quarter
Net sales during the third quarter decreased by 16 percent compared to last year and amounted to SEK 554 M (656). It is explained by closure of the Baltic unit of -10 percent, negative price and mix effects of -9 percent and negative currency effects of -3 percent partly compensated by organic tonnage growth of 7 percent. Compared to last year, mainly sales of long products, measured in tonnage, increased. The operating result increased to SEK 14 M (-20). Adjusted for inventory losses of SEK -1 M (-21) and items affecting comparability of SEK 8 M (-2), as a result of reduced provision related to the closure of the Baltic unit, the underlying operating result increased to SEK 7 M (3).
The Finnish operations provided a somewhat increased underlying operating result compared to last year. Lower steel prices and turnover is compensated by tonnage growth and strengthened gross margin.
First nine months
Net sales for the first nine months decreased by 17 percent compared to last year, amounting to SEK 1,807 M (2,165). The decline is explained by negative price and mix effects of -11 percent and closure of unit of -6 percent. Operating result increased to SEK 4 M (-1) and adjusted for inventory gains and losses of SEK 1 M (-10) and items affecting comparability of SEK -19 M (-2), the underlying operating result increased to SEK 22 M (9).
The closure of the Baltic unit, which was communicated at the end of March, went better than planned and has, in all material aspects, been concluded in the third quarter. The closure is expected to generate a positive cash flow of about SEK 30 M and will have a positive impact on the Group’s future results.