BE Group closes loss-makers in Czech Republic and Slovakia

The Board of Directors of BE Group has made a decision to restructure the businesses in Czech Republic and Slovakia. The restructuring is in line with the Group´s efforts to improve profitability and to focus on its main markets in Sweden, Finland and the Baltics.

The market in Czech Republic and Slovakia has for a number of years developed negatively and the companies have continued to be lossmaking despite several measures taken to reach profitability. The turnover in these markets were SEK 382 M during 2015 and the operating result amounted to SEK -32 M including non-recurring items of SEK -20 M.

Against this background and the prevailing weak market outlook BE Group has decided to close down the business in Slovakia and stop selling flat carbon steel and aluminum on the Czech market. The one-time cost is estimated at SEK 45 M of which SEK 10 M affects the cash-flow. The cost will impact the current year result. An updated assessment will be given when the result for the first quarter is published.

The profitable business in Prerov, Czech Republic, who successfully provides the market with cutted round bar is not affected by the decision.

For further information, please contact:
Anders Martinsson, President and CEO
tel.: +46 (0)706-21 02 22 e-mail: anders.martinsson@begroup.com

Andreas Karlsson, CFO
tel.: +46 (0)709-48 22 33 e-mail: andreas.karlsson@begroup.com

BE Group, listed on the Nasdaq Stockholm exchange, is a trading and service company in steel, stainless steel and aluminium. BE Group offers efficient distribution and value-adding production services to customers primarily in the construction and engineering sectors. In 2015, the Group reported sales of SEK 4.2 billion. BE Group has about 770 employees, 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.

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