BE Group is reporting lower earnings but notes stabilization

Press Release

April 24, 2009

• Cost savings programme faster and more effective. The programme was expanded to SEK 150M per year, which will be realized in 2009.

• In the Group’s main markets, a stabilization of shipped tonnage was noted in the latter part of the quarter and in April.

• Sales decreased by 34% to SEK 1,309M (1,995) accompanied by steep tonnage downturn.

• BE Group is reporting an operating loss of SEK 93M (135) attributable to the tonnage downturn and inventory losses of SEK 95M (-7). Underlying EBITA was nevertheless positive at SEK 4M (143).

BE Group’s new President and CEO Lars Bergström’s remarks on the report:

“The recession deepened in the first quarter and the combination of lower demand and falling prices has had severe impact on BE Group. However, the cost savings programme is developing better than planned and we have expanded savings measures to an estimated SEK 150M on an annual basis, up from the previously communicated SEK 100M."

“BE Group expects a weak market in 2009 with lower demand and margins than in 2008. We are seeing signs of price stabilization but the course of future development remains highly uncertain."

“Despite the downturn, BE Group is holding its market position and continuing to solidify its status as one of the leading European companies in the industry."

“We will maintain our long-term strategy of increasing the service component of sales. We are also working intensively with various activities to improve efficiency and competitiveness while focusing on reducing working capital and adjusting inventories to current demand. Taken as a whole, BE Group is strong, prepared for the future and will be ready when the recovery occurs.”



The information presented here is such that BE Group AB (publ) is required to make public under the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was released for publication on April 24, 2009 at 7:30 a.m. CET.