Weak ending of 2010 for BE Group
BE Group’s development in the fourth quarter of 2010 was weaker than expected. In addition to a normal seasonal downturn towards the end of the quarter, the Group’s earnings have been impacted negatively by a declining price trend combined with an unfavorable sales mix.
Consolidated revenues for the fourth quarter of 2010 amounted to SEK 1,383 M (1,011), an increase of 37 percent. The operating loss improved somewhat and amounted to SEK 8 M after inventory losses, compared with a loss of SEK 33 M for the equivalent period in 2009.
“For BE Group, the demand trend in the fourth quarter was weaker than expected. In addition, a weak price trend, combined with an unfavorable sales mix, resulted in an unsatisfactory margin level. The quarter was also impacted by higher costs than expected, including a cost of SEK 8 M for bad debts,” says Roger Johansson, CEO of BE Group since January 1, 2011.
“Since the start of the new year, 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,” comments Roger Johansson.
BE Group’s sales for the 2010 full-year rose by 19 percent to SEK 5,129 M (4,308). Operating profit improved and amounted to SEK 98 M (loss: 266).
A complete account of developments in the fourth quarter of 2010 and the final full-year earnings will be presented in BE Group’s year-end report, which is due for publication on February 9, 2011 at 07.30 a.m. CET.
Roger Johansson, CEO, tel.: +46 (0)733 188 758
e-mail: roger.johansson@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.
Tags: