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 5 percent in the third quarter compared to last year and amounted to SEK 512 M (540). The decrease is explained by negative price and mix effects of -6 percent while organic tonnage increased 1 percent. Sales of long products, measured in tonnage, increased strongly compared to last year except for rebar which decreased. The operating result amounted to SEK -10 M (-20). Adjusted for inventory losses of SEK -8 M (-19) and items affecting comparability of SEK 0 M (-4), the underlying operating result amounted to SEK -1 M (3).

In the Swedish operations, tonnage increased with the exception of continued weak demand for rebar from the construction sector. Lower steel prices and a continued low gross margin contributed to a weak underlying operating result. Falling sheet metal prices and weaker demand led to a lower gross margin and our joint venture AMBE therefore provided a lower operating result than last year.

The Polish operations increased in volume but the result was negative due to lower steel prices and a low gross margin.

First nine months

Net sales for the first nine months decreased by 8 percent compared to last year, amounting to SEK 1,862 M (2,020). The decline is explained by negative price and mix effects of -7 percent and organic tonnage growth of -1 percent. The decrease in tonnage is mainly explained by lower demand for rebar. Excluding rebar, tonnage increased by 7 percent. Operating result increased to SEK 14 M (-7). Adjusted for inventory losses of SEK -28 M (-46) and items affecting comparability of SEK 0 M (-4), the underlying operating result amounted to SEK 43 M (43).

Business Area Sweden & Poland, sales growth and underlying operating result per quarter