Continued sales increases and strongly improved operating result

Continued sales increases and strongly improved operating result

- Net sales amounted to SEK 1,399 M (1,071), which represents an
increase of 31 percent. Shipped tonnage rose by 25 percent and the
average sales price by 4 percent.

- During the quarter, the operating result improved by SEK 182 M to SEK
86 M
(loss 96) and underlying EBIT amounted to SEK 47 M (loss 4).

- A three-year credit agreement with improved terms was signed during
the quarter. The total credit facility amounts to SEK 1,300 M, including
guarantee facilities.

- Early in the third quarter, steel prices (both purchasing and sales
prices) are judged to be of a level comparable to that in June.On the
basis of ongoing discussions with customers, BE Group expects continued
improvement in demand, following the vacation period.

BE Group's President and CEO Lars Bergström made the following comments
regarding the report for the second quarter of 2010: 

“Following six quarters of negative results, BE Group is once again a
profitable business. Our operating result improved by SEK 182 M compared
with the corresponding quarter in 2009. The increase was SEK 114 M
compared with the first quarter of the year. This represents a very
clear recovery and we have coped well with a difficult period through
dedicated efforts by the Group's employees. 

The trend in BE Group's markets was characterized by continued recovery.
All in all, we delivered 25 percent more tonnage compared with the
corresponding quarter in 2009 and 16 percent more than in the first
quarter of 2010. 

The Swedish market continued to show improvement. Customers in the
construction sector increased their orders, partly due to the normal
seasonal effect and partly as a consequence of the harsh winter, which
caused them to postpone certain projects. In Finland too, demand
continues to rise and the business area's sales increased by 41 percent,
primarily to customers in the engineering sector. In the CEE markets,
the increase that we noted in the previous quarter continued and the
business area's shipped tonnage rose by 33 percent compared with the
year-earlier period. The business area has succeeded well in
strengthening its market position, mainly in Central Europe and through
continued development of the logistics center in Ostrava in the Czech
Republic. 

In the early part of the third quarter, purchasing prices (and
consequently also sales prices) will in our view remain at the same
level as in June. 

During the quarter, BE Group strengthened its financial position through
a new credit agreement. This agreement entails improved terms and was
employed during the quarter to refinance existing credit facilities.
Combined with increasingly stable demand and a stronger economy, this
means BE Group takes a positive outlook on trends in the latter half of
the year.”

A press conference hosted by Lars Bergström and Torbjörn Clementz will
be held in English at 1:00 p.m. for the press and market analysts. 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://storm.zoomvisionmamato.com/player/begroup/objects/152h9dsg (http:
//storm.zoomvisionmamato.com/player/begroup/objects/152h9dsg)

The following telephone numbers can be used to participate in the
presentation:
Sweden:        +46 (0)8 505 598 53
UK:              +44 (0)203 043 24 36
US:               +1 866 458 40 87

Lars Bergström, President and CEO Tel. +46 (0) 40 38 42 00 E-mail:
lars.bergstrom@begroup.com Torbjörn Clementz, CFO and Deputy CEO Tel.
+46 (0) 70 869 07 88 E-mail: torbjorn.clementz@begroup.com