Continued sales increases and strongly improved operating result
- Net sales amounted to SEK 1,399 M (1,071), which represents an increase of 31 percent. Shipped tonnage rose by 25 percent and the average sales price by 4 percent.
- During the quarter, the operating result improved by SEK 182 M to SEK 86 M
(loss 96) and underlying EBIT amounted to SEK 47 M (loss 4).
- A three-year credit agreement with improved terms was signed during the quarter. The total credit facility amounts to SEK 1,300 M, including guarantee facilities.
- Early in the third quarter, steel prices (both purchasing and sales prices) are judged to be of a level comparable to that in June.On the basis of ongoing discussions with customers, BE Group expects continued improvement in demand, following the vacation period.
BE Group’s President and CEO Lars Bergström made the following comments regarding the report for the second quarter of 2010:
“Following six quarters of negative results, BE Group is once again a profitable business. Our operating result improved by SEK 182 M compared with the corresponding quarter in 2009. The increase was SEK 114 M compared with the first quarter of the year. This represents a very clear recovery and we have coped well with a difficult period through dedicated efforts by the Group’s employees.
The trend in BE Group’s markets was characterized by continued recovery. All in all, we delivered 25 percent more tonnage compared with the corresponding quarter in 2009 and 16 percent more than in the first quarter of 2010.
The Swedish market continued to show improvement. Customers in the construction sector increased their orders, partly due to the normal seasonal effect and partly as a consequence of the harsh winter, which caused them to postpone certain projects. In Finland too, demand continues to rise and the business area’s sales increased by 41 percent, primarily to customers in the engineering sector. In the CEE markets, the increase that we noted in the previous quarter continued and the business area’s shipped tonnage rose by 33 percent compared with the year-earlier period. The business area has succeeded well in strengthening its market position, mainly in Central Europe and through continued development of the logistics center in Ostrava in the Czech Republic.
In the early part of the third quarter, purchasing prices (and consequently also sales prices) will in our view remain at the same level as in June.
During the quarter, BE Group strengthened its financial position through a new credit agreement. This agreement entails improved terms and was employed during the quarter to refinance existing credit facilities. Combined with increasingly stable demand and a stronger economy, this means BE Group takes a positive outlook on trends in the latter half of the year.”
A press conference hosted by Lars Bergström and Torbjörn Clementz will be held in English at 1:00 p.m. for the press and market analysts. 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://storm.zoomvisionmamato.com/player/begroup/objects/152h9dsg
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
Lars Bergström, President and CEO Tel. +46 (0) 40 38 42 00 E-mail: lars.bergstrom@begroup.com Torbjörn Clementz, CFO and Deputy CEO Tel. +46 (0) 70 869 07 88 E-mail: torbjorn.clementz@begroup.com
BE Group, listed on the Nasdaq OMX Stockholm, is one of the leading trading and service companies for steel and other metals in Europe. The Group has about 10,000 customers, primarily in the construction and engineering industries. BE Group provides various forms of service for steel, stainless steel and aluminium applications. In 2009, the company reported sales totaling SEK 4.3 billion. BE Group has about 900 employees in nine countries in northern Europe, where Sweden and Finland are its largest markets. The head office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.
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