BE Group Year-end report 2013 – improved earnings during Q4 and new financing agreement

• Net sales fell by 4 percent compared with the preceding year, amounting to SEK 957 M (998). Shipped tonnage decreased by 2 percent.
• The operating result improved to a loss of SEK 4 M (42) and the underlying operating result improved to SEK 0 M (33).
• Visible effects of cost-reduction and improved gross margin.
• The Board of Directors proposes, as for the preceding year, that no dividend be paid to shareholders for the 2013 financial year.
• After the end of the reporting period, the Board of Directors has resolved on a rights issue of SEK 160 M. The issue is fully secured and requires the approval of an Extraordinary General Meeting to be held on February 11. Furthermore, a new three year credit agreement has been signed. The total credit facility amounts to SEK 1,250 M and is dependent on the finalization of the new share issue.

The President and CEO of BE Group, Kimmo Väkiparta, comments on the report for the fourth quarter of 2013:

”The demand levels that we saw following the vacation period generally remained intact during the quarter, with the exception of the seasonal decline towards the end of the year. Sales prices also remained largely unchanged in relation to the preceding quarter. Compared with the preceding year, we see a clearly more stable market situation.

Combined with an increased gross margin and lower costs, clear effects of our internal measures have given us a substantial improvement in earnings compared with the preceding year.

Based on signals from customers, improved demand is indicated for 2014. Consequently, we expect a recovery in demand in the Group’s markets during the year compared with the last quarter 2013. The Group's competitiveness will continue to improve following the implemented efficiency improvement and the new share issue that has been decided will give us a stronger financial position as we move forward.”

For further information, please contact:
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. Make sure to include the full link.

http://www.media-server.com/m/p/eiosuciy

The following telephone number can be used to participate in the presentation:
Sweden:   +46 (0)8 505 56 474
UK:   +44 (0)203 364 53 74
US:   +1 855 753 22 30

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 2013, the Group reported sales of SEK 4.0 Bn. BE Group has approximately 800 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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