Third quarter
- Net sales decreased by 22% to
SEK 1,187 M (1,514) -
The underlying operating result amounted to
SEK 4 M (67) -
The operating result amounted to
SEK -42 M (40), including inventory losses ofSEK -40 M (-27) and items affecting comparability ofSEK -6 M (-) due to restructuring -
Result after tax amounted to
SEK -42 M (26) -
Cash flow from operating activities amounted to
SEK -17 M (-183) -
Earnings per share amounted to
SEK -3.27 (2.05)
Statement from the CEO
Market conditions remained difficult, particularly in the construction sector, causing net sales in the third quarter to decline by 22% to
Non-recurring costs relates to efficiency enhancement of the organization. Combined with cost rationalizations, this is expected to generate an annual savings effect of more than
The reason for the weak result is a continuous drop in prices and tonnage, which pressures the gross margin. The decline in tonnage originates exclusively from the Swedish part of the operations, which is mainly attributable to greater exposure to the construction sector.
Outlook
Demand in the fourth quarter is expected to be in line with the third quarter. In general, few or no negative signals are coming from the industrial sector, while the construction sector is expected to continue at low levels of activity.
Spot prices have fallen into Q4 and, according to analyst firms, are expected to bottom out in November and then increase slightly into 2024. A lower price level does not reasonably work for steel producers and they are likely to further reduce their capacity if they do not get at least the current levels.
Our focus
When the market situation is tough, it is important to keep your head cool. A lot of steel is needed even in worse times and now it is important to secure as many deals as possible at healthy margins. This, together with the ongoing adaptation of the organization and costs, will in the long term result in a stronger
For further information, please contact:
Tel: +46 706 53 76 55, email: peter.andersson@begroup.com
Christoffer Franzén, CFO
Tel: +46 705 46 90 05, email: christoffer.franzen@begroup.com
This information is information that
https://news.cision.com/be-group-ab/r/be-group-interim-report-january---september-2023,c3855925
https://mb.cision.com/Main/1831/3855925/2366741.pdf
https://mb.cision.com/Public/1831/3855925/9883e9c91c2593b3.pdf
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