Earnings improve compared to the second half of 2007 due to higher sales and margins

Press Release
April 23, 2008

BE Group is reporting higher profits compared to the two preceding quarters on the strength of higher sales and stronger gross margins. The sales increase entailed a favourable change in the trend compared to the weaker development in the second half of 2007.

Net sales were SEK 1,995M for the quarter, 3.4% lower than the record-breaking first quarter of 2007, when sales reached SEK 2,065M. Sales increased by 10.7% compared to Q4 2007.

The service component of tonnage increased to 36,8% (32.8), the highest level to date for a single quarter, which boosted the company’s margins.

Operating profit was SEK 135M (173) and underlying EBITA1) was SEK 143M (167). The underlying EBITA margin was 7.2% (8.1). Operating profit and underlying EBITA improved substantially compared to Q4 2007.

Profit after tax was SEK 93M (126) and earnings per share after dilution were SEK 1.87 (2.52). Profit after tax rose outperformed Q4 2007 by 73,7%.

BE Group finalized the acquisition of Czechprofil in the Czech Republic in the first quarter.

After the end of the period, the European Commission approved the joint venture with ArcelorMittal in the Swedish thin plate market.

BE Group President and Chief Executive Officer Håkan Jeppsson’s remarks on the report:

“I am pleased to report that profits are trending upward following a somewhat weak second half in 2007. In one of the notable achievements during the quarter, BE Group improved underlying margins in all business areas, due in part to higher sales of services.

“The first quarter brought increased sales for BE Group in the Nordic region, especially Finland, compared to the second half of 2007. Our current assessment is that demand in the Swedish and Finnish markets will remain relatively high, although there is some uncertainty regarding demand in the second half, especially in Sweden.

“Growth remains strong in Central and Eastern Europe, especially in the Czech Republic and Slovakia, and BE Group expects the trend to hold for the rest of the year. The acquisition of Czechprofil is expected to enhance sales and profits for the full year and integration of the company is proceeding according to plan.”

1) EBITA adjusted for inventory gains and losses and exceptional items (deductions for gains and additions for losses).

For further information, please contact:

President and Chief Executive Officer Håkan Jeppsson, +46 (0) 705 – 50 15 17, e-mail: hakan.jeppsson@begroup.com
Chief Financial Officer Torbjörn Clementz, +46 (0) 70 - 869 07 88, e-mail: torbjorn.clementz@begroup.com

A press conference in English will be held at 1:00 p.m. You may follow the conference by webcast or phone (see information below). BE Group CEO Håkan Jeppsson and CFO Torbjörn Clementz will host the press conference.

If you wish to participate via webcast or ask questions in connection with the press conference, please register online via the following link: http://wcc.webeventservices.com/view/wl/r.htm?e=108238&s=1&k=5AD9B16ADCFCD0044D86F378C67A4169&cb=genesys

If you do not have access to the Internet, you may register by phone on +46 (0) 8 – 5052 0110 a few minutes before the conference begins.


The information presented here is such that BE Group AB (publ) is required to publish pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on April 23, 2008 at 07:30 p.m. CET.