BE Group Q2 – continued positive signs
- Net sales decreased by 14 percent compared with the preceding year and amounted to SEK 1,089 M (1,273). Shipped tonnage decreased by 7 percent.
- The operating result amounted to SEK 5 M (21) and the underlying operating result to SEK 8 M (16).
- During the quarter BE Group signed an agreement regarding divestment of the Group’s subsidiary in China. The divestment will be completed during the month of July. The sales price is approximately SEK 10 M and entails a small capital gain.
The President and CEO of BE Group, Kimmo Väkiparta, comments on the report for the second quarter of 2013:
“The trend from the first quarter, with slightly improving demand continued in the second quarter, even though the improvement continues to be slow. In the Swedish operations, we saw a shift towards an increased proportion of sales to the OEM segment, as a consequence of increased sales of production services. In general, the steel price trend remains weakly negative although, for BE Group, the weakening is modest compared with the first quarter, thanks to the increased proportion of production services.
Our long-term and conscious process to generate cost reductions and strengthen margins contributed positively to the results for the period. In terms of margins, it is primarily the basic operations in Sweden that have developed well.
Disregarding the seasonal summer decline, we expect a continued slight improvement in demand. Over the upcoming quarter, sales prices are, however, expected to fall somewhat as a result of lower steel prices. At the same time, cost reductions and continued efficiency improvements are strengthening our competitiveness.”
Please address any questions to:
Kimmo Väkiparta, President and CEO
tel.: +46 (0)705 972 342 e-mail: kimmo.vakiparta@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, Kimmo Väkiparta 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. Please be certain to copy the full link.
http://storm.zoomvisionmamato.com/player/begroup/objects/h92t1f68
The following telephone number can be used to participate in the presentation:
Sweden: +46 (0)8 506 307 79
UK: +44 (0)844 571 89 57
US: +1 866 682 8490
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 2012, the Group reported sales of SEK 4.6 Bn. BE Group has more than 850 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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