Comments on the report
Third quarter
The Group’s consolidated net sales for the period decreased by 11 percent compared to last year and amounted to SEK 1,057 M (1,187). The decline is mainly explained by negative price and mix effects of -7 percent, closure of the Baltic unit of -6 percent and negative currency effects of -2 percent partly compensated by organic tonnage growth of 4 percent. Prices for flat products continued to fall in the third quarter, primarily as a consequence of a lower pace in the European automotive sector, while prices for long products remained relatively stable. Tonnage to the manufacturing sector rose organically by 6 percent and deliveries to the sub-supplier segment increased by 12 percent. Tonnage to the construction segment was organically unchanged and was affected by low demand for rebar. However, excluding rebar, the construction segment rose by 23 percent as sales of long products increased strongly.
Increased tonnage on the main markets and more stable steel prices led to an increase in gross profit to SEK 118 M (99), resulting in a gross margin of 11.1 percent (8.3). The operating result increased to SEK 5 M (-42), corresponding to an operating margin of 0.5 percent (-3.5). Adjusted for inventory losses of SEK -9 M (-40) and items affecting comparability of SEK 8 M (-6), as a result of reduced provision related to the closure of the Baltic unit, the underlying operating result increased slightly to SEK 6 M (4). The underlying operating margin for the period increased to 0.6 percent (0.3).
First nine months
During the first nine months, the Group’s net sales decreased by 12 percent compared to last year and amounted to SEK 3,634 M (4,151). This is explained by negative price and mix effects of -9 percent and closure of unit of -3 percent. Tonnage in business area Sweden & Poland decreased organically by -1 percent, but excluding rebar it increased by 7 percent. In Finland & Baltics organic tonnage increased by 1 percent. Gross profit increased to SEK 435 M (430) and the gross margin rose to 12.0 percent (10.4).
The operating result increased to SEK 20 M (-15), corresponding to an operating margin of 0.5 percent (-0.4). Adjusted for inventory losses of SEK -27 M (-56) and items affecting comparability of SEK -19 M (-6), the underlying operating result increased to SEK 66 M (47). During the period, the underlying operating margin increased to 1.8 percent (1.1).