Sales up 39 percent and improved operating result
- Net sales amounted to SEK 1,273 M (917) – an increase of 39 percent. Shipped tonnage rose by 24 percent and the average sales price by 12 percent.
- The operating result for the quarter improved by SEK 92 M to SEK 48 M (loss 44) and underlying EBIT amounted to SEK 37 M (loss 7).
- Continued favorable demand, mainly from construction and engineering customers.
- Swedish steel construction company Lecor Stålteknik was acquired after the end of the quarter. The acquisition strengthens BE Group’s production service offering.
BE Group’s President and CEO Lars Bergström comments on the report for the third quarter of 2010:
“BE Group’s development in the third quarter of the year reaffirms the assessment we made before the summer. The recovery in the Finnish and Swedish steel markets is progressing faster than elsewhere in Europe, albeit from low levels. Compared with the corresponding quarter in 2009, BE Group’s sales rose 39 percent and the operating result improved by SEK 92 M.
Demand in BE Group’s markets has remained at the level established in the second quarter. The genuine improvement we saw then is continuing. It is primarily our larger construction and engineering customers that are showing a higher level of activity and, based on our contacts with customers, we expect the demand trend to remain favorable.
In the Swedish market, demand was the same as in the second quarter among construction and larger engineering customers. This elevated level has not yet fully pervaded other parts of the engineering sector. The Finnish business area’s sales increased by 60 percent, primarily due to customers in the engineering sector. Sales in the CEE business area continued to rise compared with both the corresponding quarter in 2009 and the preceding quarter.
The Group’s efforts to strengthen and broaden its offering in production services are progressing well and, with the acquisition of Lecor Stålteknik AB at the beginning of October, we took a further step towards being able to meet customer demand for expertise in production and project management in larger procurements.
The Group’s focus on strengthening its margins includes both an extended service offering and measures to enhance efficiency. These efforts have been successful as can be seen in improved margins at all levels for the first three quarters of the year compared with the corresponding periods in 2009.
In our assessment, sales prices will decrease somewhat over the remainder of 2010. The Group will benefit from any increased demand resulting from inventory build-up among customers, although this has not yet been noted to any great extent.”
Lars Bergström, President and CEO Tel. +46 (0)702 240 5235, 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 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 2009, the company reported sales totaling SEK 4.3 billion. BE Group has slightly less than 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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