MALMÖ, Sweden--(BUSINESS WIRE)--Regulatory News:
- Net sales decreased by 22 percent compared with the preceding year and amounted to SEK 998 M (1,288). Shipped tonnage decreased by 14 percent.
- The operating result weakened to a negative SEK 42 M (positive 1) and the underlying operating result to a negative SEK 33 M (positive 29).
- The basic operations in Sweden show an improved gross margin and the proportion of production services continues to rise in Finland compared with the preceding year.
- Following the close of the quarter, BE Group has initiated negotiations on personnel reductions to strengthen competitiveness. These measures affect some 140 full-time jobs in Sweden and Finland and are expected to provide an annual cost reduction of about SEK 65 M.
- The Board of Directors proposes that no (SEK 0.25) dividend be paid to the shareholders for the 2012 financial year.
The President of BE Group, Kimmo Väkiparta, comments on the report for the fourth quarter of 2012:
“The trend over the most recent quarters, with generally weakening demand, persisted during the fourth quarter. We have also had a stronger seasonal dip than normal. Tonnage decreased by 14 percent and, combined with lower prices, this explains the drop in results.
Despite the decline in volumes, however, the basic operations in Sweden continued to do well and once again showed a strong gross margin. In Finland, the proportion of production services rose to 48 percent, demonstrating that our investments have been correct. These are important signals for the future.
The process of selling the operations in the Czech Republic is in progress. Among other parts of Business Area CEE, it is the operations in Poland that have yet to show profitability and we are applying additional measures there.
Going forward, the trend is difficult to assess but faintly positive. According to our most recent indications, demand has improved somewhat in early 2013 when we compare with the end of 2012. Similarly, sales prices are expected to rise during the first quarter. Regardless of the economic trend, the ongoing program of measures will also affect BE Group’s competitiveness and results positively.”
Today, at 09:00 a.m. CET, Kimmo Väkiparta 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. Please be certain to copy the full link.
The following telephone number can be used to participate in the
Sweden: +46 (0)8 506 307 79
UK: +44 (0)844 571 89 57
US: +1 866 682 8490
BE Group, listed on the NASDAQ OMX Stockholm exchange, is a trading and service company in steel and other metals. BE Group provides various forms of service for steel, stainless steel and aluminium applications to customers primarily in the construction and engineering sectors. In 2012, the Group reported sales of SEK 4.6 Bn. BE Group has approximately 900 employees in nine countries, with Sweden and Finland as its largest markets. The head office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com
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