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2014-04-24

BE Group AB: BE Group Q1 2014 - improved earnings and signs of improved demand

· Net sales fell by 3 percent compared with the preceding year,
amounting to SEK 1,003 M (1,032). Shipped tonnage decreased by 4
percent.

· The operating result improved to SEK 12 M (loss 17) and the
underlying operating result improved to SEK 16 M (14).

· In the first quarter, a rights issue with preferential rights for
existing shareholders was completed. The rights issue was
oversubscribed by 70 percent and raised SEK 154 M for BE Group after
transaction costs. In addition, BE Group signed a new three year
credit agreement with a total facility of SEK 1,250 M.

The President and CEO of BE Group, Kimmo Väkiparta, comments on the
report:

"The first quarter of 2014 offered no surprises. The improvement in
demand that we foresaw in late 2013 began to appear towards the end
of the quarter, and both net sales and shipped tonnage are relatively
stable. It is also positive that shipments from our own facilities
have increased.

On the cost side, it is clear that our efforts have been successful.
The cutbacks in the labor force have now reached their full impact on
earnings, and together with other structural measures, this is having
an effect on competitiveness and margins. At the same time, an
oversubscribed rights issue and the new credit facility are
contributing to a stronger financial position.

The combination of positive signals regarding demand and a competitive
cost structure gives us a favorable leverage going forward. Our
position as solutions-focused and independent steel service company
with a broad offering of value-adding services is appreciated by both
customers and suppliers.

Signals among customers indicate improving demand in 2014, and we
therefore expect continued recovery in demand compared with the first
quarter. The indications from the Swedish market are particularly
positive. Here we also see interesting opportunities for new business
due to upcoming structural changes in the sector."

For further information, please contact:
Kimmo Väkiparta, President and CEO
tel.: +46 (0)705 972 342 e-mail: kimmo.vakiparta@begroup.com

Torbjörn Clementz, CFO and Executive Vice President
tel.: +46 (0)708 690 788 e-mail: torbjorn.clementz@begroup.com

Today, at 08:30 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. Make sure to include the full link.

http://www.media-server.com/m/p/wqqj3enm

The following telephone number can be used to participate in the
presentation:

Sweden: +46 (0)8 505 56 474
UK: +44 (0)203 364 53 74
US: +1 855 753 22 30
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 2013, the Group reported sales of SEK 4.0 Bn.
BE Group has approximately 800 employees, 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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http://news.cision.com/be-group-ab/r/be-group-q1-2014---improved-earning...
http://mb.cision.com/Main/1831/9574196/236944.pdf
http://mb.cision.com/Public/1831/9574196/a524931994c2c6ba.pdf

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