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Profit shortfall for BE group

Tuesday, 22 October 2013
Metal wholesaler BE Group’s operating profit for the remaining units was Skr13.0 million in the third quarter of 2013 whereas it was expected that EBIT earnings would reach Skr22.3 million, according to analysts’ expectations.

Underlying operating profit was Skr18.0 million whereas expectation was an underlying operating profit of Skr20.3 million.

Net sales fell by 10 percent compared with the year-earlier period, amounting to Skr 916 Million (1,020). Shipped tonnage decreased by 6 percent. The operating result rose to Skr 13 Million (6) and the underlying operating result improved to Skr 18 Million (15).

Profit after tax for the continuing operations was Skr 1 Million (loss 5) and the operating loss from

Net sales fell by 10 percent compared with the year-earlier period, amounting to Skr 916 Million (1,020). Shipped tonnage decreased by 6 percent.

The operating result rose to Skr 13 M (6) and the underlying operating result improved to Skr 18 M (15).

Profit after tax for the continuing operations was Skr 1 M (loss 5) and the operating loss from discontinued operations was Skr 2 M (85).

To increase the market focus on BE Group’s core operations in Sweden and Finland, a change in the organization of the Group was implemented during the quarter.

The Board of Directors will recommend a rights issue of approx. Skr 150 M.

The President and CEO of BE Group, Kimmo Väkiparta, comments on the report for the third quarter of 2013:

“In our Swedish operations, demand following the vacation period stabilized at the same level as in the second quarter. In Finland, we are pleased to have seen a slight improvement following the vacation period. The sales price trend for the quarter was weakly negative. For certain products, however, steel prices rose after the vacation period.

The operations within Other Units also developed favorably.
The Group’s cost level has been significantly reduced, which is a major reason behind the improved operating result. It is satisfying to see the effects of our own rationalizations and structural changes.

In the final quarter of the year, we expect that, up until the seasonal downturn towards the end of the year, demand will remain at the level that was established following the vacation period. Signals from customers are currently positive regarding development of the demand for the year 2014. Sales prices are expected to rise somewhat as a result of higher steel prices. Implemented efficiency improvements are gradually strengthening the Group’s competitiveness and, at the same time, entail a leverage effect when the economy improves. The implemented streamlining of the Group increases market focus on our core operations in Sweden and Finland.”

**In brackets are comparable amounts of the same period a year ago

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