Comments on the report

Fourth quarter

The Group’s consolidated net sales for the period decreased by 12 percent compared to last year and amounted to SEK 1,033 M (1,177). The decline is explained by closure of the Baltic unit of -5 percent, negative price and mix effects of -4 percent and negative organic tonnage growth of -3 percent. The weak economy contributed to continued pressure on steel prices in the fourth quarter.

Tonnage to the manufacturing sector decreased organically by -1 percent and deliveries to OEM customers decreased by -9 percent. Tonnage to the construction segment decreased organically by -8 percent and was negatively affected by continued low demand for rebar. However, excluding rebar, the construction segment rose by 10 percent.

Gross profit amounted to SEK 82 M (114) and the gross margin was a low 8.0 percent (9.6) due to lower steel prices, decreased tonnage and inventory losses. The operating result amounted to SEK -69 M (-37), corresponding to an operating margin of -6.6 percent (-3.2). Adjusted for inventory losses of SEK -26 M (-20) and items affecting comparability of SEK -28 M (-), the underlying operating result amounted to SEK -15 M (-17) and the underlying operating margin was -1.5 percent (-1.4).

Full-year 2024

During the year, the Group’s net sales decreased by 12 percent compared to last year and amounted to SEK 4,667 M (5,328). The decline is explained by negative price and mix effects of -8 percent, closure of the Baltic unit of -3 percent and negative tonnage growth of -1 percent. Tonnage to the construction industry decreased organically by -6 percent, which mainly affects the Swedish business, while the manufacturing industry increased by 1 percent. Tonnage in business area Sweden & Poland decreased by -2 percent, but excluding rebar it increased by 5 percent. In Finland & Baltics organic tonnage increased by 1 percent through increased sale of long products.

Gross profit amounted to SEK 517 M (544) while the gross margin increased to 11.1 percent (10.2). The operating result amounted to SEK -49 M (-52), corresponding to an operating margin of -1.0 percent (-1.0). Adjusted for inventory losses of SEK -53 M (-76) and items affecting comparability of SEK -47 M (-6), the underlying operating result increased to SEK 51 M (30). The underlying operating margin increased to 1.1 percent (0.6).