BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and the joint venture ArcelorMittal BE Group SSC AB. The closure of the Polish unit was completed during the second quarter.

Third quarter

Net sales decreased by 9 percent in the third quarter compared to last year and amounted to SEK 468 M (512). The decrease is explained by negative price and mix effects of -7 percent, closure of the Polish unit of -3 percent while the organic tonnge increased by 1 percent, driven by increased demand from the construction sector. Sales of rebar, measured in tonnage, increased compared to last year. The operating result amounted to SEK -7 M (-10). Adjusted for inventory losses of SEK -3 M (-8) and items affecting comparability of SEK -3 M (0), the underlying operating result amounted to SEK -1 M (-1).

The Swedish operations provided a negative underlying operating result despite a volume increase of 1 percent driven by OEM and the construction segment. The lower demand from other parts of the manufacturing industry, combined with lower steel prices, resulted in a gross margin continuosly under pressure. Our joint venture AMBE provided an increased operating result due to increased volumes and strenghtened gross margin despite lower steel prices.

First nine months

Net sales for the first nine months decreased by 9 percent compared to last year, amounting to SEK 1,702 M (1,862). The decline is explained by negative price and mix effects of -9 percent, closure of the Polish unit of -2 percent while the organic tonnage increased by 2 percent, driven by increased demand from the construction sector. Operating result amounted to SEK -247 M (14). Adjusted for items affecting comparability of SEK -243 M (-) and inventory losses of SEK -7 M (-28), the underlying operating result amounted to SEK 3 M (43).

The closure of the unit in Arvika was completed and operations has been moved to the main facility in Norrköping. The move of the Polish operations to Sweden and Finland was completed during the second quarter.