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. Lecor Stålteknik was divested on July 1, 2022.

Fourth quarter

Net sales increased by 4 percent in the fourth quarter compared to last year and amounted to SEK 777 M (744). The higher sales is explained by positive price and mix effects of 14 percent, acquisitions and divestments of 2 percent counteracted by organic tonnage growth of -12 percent. The operating result amounted to SEK -15 M (96). Adjusted for inventory gains and losses of SEK -28 M (16), the underlying operating result amounted to SEK 13 M (80).

The Swedish operations provided a lower underlying operating result compared with the strong previous year, while profitability in the Polish operations was unchanged. Lower demand has led to falling steel prices and pressure on gross margins.

Our joint venture AMBE provided a lower operating result due to decreased demand and falling prices on thin sheets, which resulted in inventory losses leading to a negative contribution of SEK -2 M (25).

Full-year 2022

Net sales increased by 30 percent compared to last year, amounting to SEK 3,408 M (2,625). Sales growth is explained by positive price and mix effects of 35 percent, acquisitions and divestments of 5 percent counteracted by organic tonnage growth of -10 percent. Operating result amounted to SEK 217 M (282). Adjusted for inventory gains and losses of SEK -19 M (61), the underlying operating result increased to SEK 236 M (221).

During the first six months, the assets of Hercules Rebar was acquired. During the second half of the year, Goodtech Solutions Manufacturing AB, from now on BE Group Produktion Arvika, was acquired and Lecor Stålteknik was divested.