Positive sales trend and stronger production service offering
• Net sales during the fourth quarter 2010 amounted to SEK 1,383 M (1,011) – an increase of 37 percent. Shipped tonnage rose by 21 percent and the average sales price by 13 percent.
• The operating result for the quarter improved by SEK 25 M to a loss of SEK 8 M (negative 33) and underlying EBITA amounted to SEK 11 M (9).
• As a further step in BE Group’s strategy to move forward in the value chain, Lecor Stålteknik was acquired in October.
• Roger Johansson became the new President of BE Group effective from January 1, 2011.
The President of BE Group, Roger Johansson, made the following comments on the report for the fourth quarter of 2010:
“In the final quarter of the year, BE Group experienced weaker demand than expected. Besides the seasonal downturn, this is mainly explained by a declining price trend combined with an unfavorable sales mix. This resulted in an unsatisfactory margin for the fourth quarter.
During the quarter, there was some uncertainty regarding the future steel price trend. However, with purchasing prices having risen in early 2011, so have BE Group’s sales prices. As a consequence, we will be raising our prices in the first quarter.
The integration of the acquired company Lecor Stålteknik in Kungälv, Sweden, has progressed as planned and the operations had a favorable impact on the results of Business Area Sweden. In the fourth quarter, a decision was made to invest SEK 36 M in a new production facility in Kungälv.
During the quarter, investments totaling SEK 14 M were also approved for the facility in Lahti, Finland. The purpose is to further strengthen the Group’s offering in advanced production services.
Since the start of 2011, we have noted a certain increase in demand. Combined with the increases in steel prices indicated for the first half of the year, this suggests a more favorable market climate, which will benefit BE Group.”
Today, at 9:00 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. Make sure to include the full link.
http://storm.zoomvisionmamato.com/player/begroup/objects/qpnbs80g
The following telephone numbers can be used to participate in the presentation:
Sweden: +46 (0)8 505 598 53, UK: +44 203 043 24 36, and/or US: +1 866 458 40 87
Roger Johansson, President, BE Group
Tel. 46 (0)733 188 758, E-mail: roger.johansson@begroup.com
Torbjörn Clementz, CFO and Executive Vice President
Tel. 46 (0)70 869 07 88, E-mail: torbjorn.clementz@begroup.com
BE Group, listed on the Nasdaq OMX Stockholm since November 2006, 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 2010, the company reported sales totaling SEK 5.1billion. 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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