Increasing demand for BE Group
• Shipped tonnage rose during the latter part of the first quarter. All of BE Group's business areas reported an operating profit for March. • Net sales amounted to SEK 1,074 M (1,309), which represents a decline of 18 percent. Shipped tonnage was of a level comparable to that in the corresponding quarter in 2009. • During the quarter, the operating result improved to a loss of SEK 28 M (93) and underlying EBIT amounted to a loss of SEK 8 M (profit 6). • Continued improvement in working capital tied-up. • Price hikes on steel and increased demand in the second quarter will have a positive impact on BE Group's results.
BE Group’s President and CEO Lars Bergström made the following comments regarding the report: "During the latter part of the first quarter, the steel producers indicated that their prices would rise as a consequence of higher prices for raw materials. In general, prices from the steel mills began to rise in March and the increase has continued into the second quarter. The trend in BE Group's markets was characterized by recovery and demand rose towards the end of the quarter. We are seeing improved economic conditions and are continuing to increase our deliveries to customers in the OEM segment. That segment accounts for more than half of our total sales. Underlying EBITA was affected negatively by the lower price level, although this was offset to a certain extent by lower overheads resulting from the extensive cost savings program implemented in 2009. Our efforts to optimize our inventories are continuing and, during the quarter, the amount of working capital tied-up decreased to 11 percent. Due to the steel industry's price increases, BE Group's sales prices will rise in the second quarter, which will have a positive impact on results. A gradual increase in demand was noted in the Swedish market. Pleasingly, in Finland, we saw a marked increase in demand at the end of the quarter, mainly from customers in the engineering sector. In the CEE markets, the recovery that had commenced previously continued and the business area's shipped tonnage rose by 13 percent compared with the year-earlier period." 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://wcc.webeventservices.com/r.htm?e=204781&s=1&k=DAD6B034E791736A30DC58003E6C8DB3&cb=blank Those who do not have access to the Internet may register by phone on +46 (0)8 5052 0110 a few minutes before the conference begins.
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