BE Group Q3 2012 – positive operating result despite weak demand and sharp fall in prices

• Shipped tonnage decreased by 11 percent and net sales decreased as a consequence by 20 percent compared with the preceding year, amounting to SEK 1,020 M (1,268).
• The operating result amounted to SEK 6 M (13) and the underlying operating result to SEK 15 M (32).
• During the quarter, BE Group signed a new three-year credit agreement with the possibility of extending this by a total of two years.
• During the quarter, a process was initiated to sell the Group’s operations in the Czech Republic. In this connection, the operations were reclassified as a disposal group in the balance sheet and their value was written down by SEK 82 M.
• Following the close of the quarter, the Board of BE Group AB appointed Kimmo Väkiparta as the new President and CEO effective from November 1, 2012.

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

“The third quarter was largely pervaded by volume reductions as a consequence of decreased demand and inventory cutbacks among customers. Tonnage decreased by 11 percent and, combined with lower prices, this explains the drop in results.

However, cost cuts, more efficient inventory control and pricing initiatives have mitigated the effects of decreased sales. The basic operations in Sweden and Business Area Finland show improved gross margins, and in Finland, the proportion of production services rose to 49 percent of sales.

In Business Area CEE, the process of selling the operations in the Czech Republic is in progress. In Poland, our operational measures are starting to have an effect and over recent months we have had a positive earnings trend, which we believe will continue.

The future trend is difficult to assess. In the fourth quarter, we expect continued inventory cutbacks among customers and demand in line with the level established since the vacation period. Sales prices are expected to be lower compared with the third quarter. In a longer-term perspective and following the inventory cutbacks, the demand signals are more positive.”

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. Please be certain to copy the full link.

http://storm.zoomvisionmamato.com/player/begroup/objects/vyw5sbmg/

The following telephone numbers can be used to participate in the presentation:
Sweden:  +46 (0)8 505 598 53
UK:   +44 (0)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 nine 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

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