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, which is under closure.

Fourth quarter

Net sales decreased by 10 percent in the fourth quarter compared to last year and amounted to SEK 561 M (621). The decreased sales is explained by negative organic tonnge growth of -6 percent, driven by lower demand from the automotive industry and the construction sector, and negative price and mix effects of -4 percent. The operating result amounted to SEK -46 M (-17). Adjusted for inventory losses of SEK -20 M (-13) and items affecting comparability of SEK -28 M (-), the underlying operating result increased to SEK 1 M (-4).

The Swedish operations provided a negative underlying operating result. Lower demand from the automotive industry and the construction sector and lower steel prices resulted in a low gross margin.

Our joint venture AMBE provided an increased operating result. Lower steel prices and turnover is compensated by tonnage growth and strengthened gross margin.

The Polish unit provided a negative underlying result. During the quarter, the decision was made to relocate the operations to Sweden and Finland and to close the Polish unit. In 2024, the company’s external sales accounted for just over 1 percent of the Group’s total sales. The closure will be implemented in the first half of 2025 and involves about 80 people. Non-recurring costs are estimated to amount to approximately SEK -28 M and were charged to the operating result in the fourth quarter. The closure is estimated to have an ongoing positive effect with a payback period of less than one year.

Full-year 2024

Net sales decreased by 8 percent compared to last year, amounting to SEK 2,423 M (2,641). The decline is explained by negative price and mix effects of -6 percent and negative organic tonnage growth of -2 percent. The decrease in tonnage is mainly explained by lower demand for rebar. Excluding rebar, tonnage increased by 5 percent. The operating result amounted to SEK -32 M (-24). Adjusted for inventory losses of SEK -48 M (-59) and items affecting comparability of SEK -28 M (-4), the underlying operating result increased to SEK 44 M (39).