BE Group Q2 2015 – continued positive development

• Net sales decreased by 1 percent compared with the same period last year and amounted to SEK 1,104 M (1,112).
• The two largest business areas, Sweden and Finland, increased net sales by 2 and 4 percent respectively.
• The operating result improved to SEK 10 M (3).
• The result after tax was SEK -13 M (-7).
• Earnings per average number of shares amounted to SEK -0.12 (-0.10).

BE Group’s acting President and CEO, Lars Engström, comments on the report:

“The positive trend from the first quarter, with increased tonnage and improved net sales in our main markets continued during the second quarter. It is important that we grow in the Swedish and Finnish markets, since those business areas combined account for approximately 85 percent of consolidated sales, and growth is key to improved profitability. At the same time, the development of the markets in the Czech Republic and Slovakia is challenging, which, combined with lower steel prices, meant that sales fell somewhat compared with the same period last year.

The shift toward an increased proportion of sales in Sweden and Finland has also caused the gross margin to rise to 13.1 percent – up from 12.3 percent for the same period last year. This, combined with continued efficiency improvements in Other Units, means that we reported an improved result for the period.

Parallel with increased sales efforts, we have also succeeded in getting our new financial structure in place. The rights issue that was implemented was oversubscribed and brought the Group SEK 244 M. At the same time, we signed a new three-year credit agreement with a total facility of SEK 1,000 M.

When Anders Martinsson takes over as the new President and CEO on August 3, it is with the aim of continuing to develop BE Group’s position as an important and valued partner to the construction and engineering sectors, with a clear focus on marketing efforts.

Taking the seasonal decline during the vacation period into account, we ultimately see no significant change in demand ahead.”

For further information, please contact:
Lars Engström, Acting President and CEO
tel.: +46 (0)734-11 79 01 e-mail: lars.engstrom@begroup.com

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

Today, at 9:00 a.m., Lars Engström and Andreas Karlsson will comment on developments in a press and analyst conference. 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://edge.media-server.com/m/p/zdgcjii5

The following telephone numbers can be used to participate in the presentation:

Sweden:   +46 8 505 564 74
UK:  +44 20 336 453 74
US:   +1 855 753 22 30

BE Group, listed on the Nasdaq 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 2014, the Group reported sales of SEK 4.2 Bn. BE Group has approximately 750 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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