BE Group – lower sales and losses in CEE weighed down Q2 results

• Net sales fell by 15 percent in the second quarter compared with the year-earlier period and amounted to SEK 1,357 M (1,597). Shipped tonnage decreased by 11 percent.
• The operating result declined to SEK 13 M (66) and the underlying operating result amounted to SEK 7 M (43).
• Following the end of the quarter, BE Group signed a new three-year credit agreement. The total credit facility amounts to SEK 1,400 M.
• After the end of the reporting period, the Board of BE Group has decided to initiate a process to sell the operations in the Czech Republic.

The President of BE Group, Roger Johansson, made the following comments on the report for the second quarter of 2012:

“The weak result is primarily attributable to three causes: demand was substantially lower in principle on all markets compared to the corresponding quarter last year, we are losing money in the Czech Republic and Poland, and the operations acquired most recently in Sweden had a difficult quarter. Combined, this has a considerable negative impact on the result.

On a positive note, however, our main operations in Sweden, the Group’s largest individual business, continue to show strengthening margins in a relatively weak market.

The weak result gives us cause to act structurally with regard to the operations in Business Area CEE. Following the end of the reporting period, we have consequently decided to initiate a process to sell our operations in the Czech Republic.

During the second half of the year, we expect demand to be of the same level as in the second quarter, disregarding seasonal variations. Sales prices are expected to be lower in the third quarter compared with the second quarter. In the longer term, the steel price trend is more difficult to assess.”

For further information, please contact:

Roger Johansson, President and CEO
tel.: +46 (0)733 188 758  e-mail: roger.johansson@begroup.com

Torbjörn Clementz, CFO and Executive Vice President
tel.: +46 (0)708 690 788  e-mail: torbjorn.clementz@begroup.com

Today, at 09:00 a.m. CET, Roger Johansson and Torbjörn Clementz will comment on development at a conference with market analysts and the press. The conference may be followed via webcast or by phone (see information below).

If you wish to participate via webcast and/or ask questions at the press conference, please copy and paste the following link into your web browser to register online. Make sure to include the full link.

http://storm.zoomvisionmamato.com/player/begroup/objects/wf4psky7/

The following telephone numbers can be used to participate in the presentation:
Sweden:  +46 (0)8 505 598 53
UK:  +44 203 043 24 36
US:   +1 866 458 40 87

BE Group, listed on the NASDAQ OMX Stockholm exchange, is a trading and service company in steel and other metals. BE Group provides various forms of service for steel, stainless steel and aluminium applications to customers primarily in the construction and engineering sectors. In 2011, the Group reported sales of SEK 5.9 Bn. BE Group has about 900 employees in ten countries, with Sweden and Finland as its largest markets. The head office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com

Tags: