BE Group Q2 2014 – lower cost base compensates for lower volume

  · Net sales fell by 6 percent compared with the year-earlier period, amounting
to SEK 1,027 M (1,089). Shipped tonnage decreased by 10 percent.
  · The operating result amounted to SEK 4 M (5) and the underlying operating
result to SEK 5 M (8).
  · The loss after tax for the continuing operations was SEK 5 M (7) and from
operations for sale was SEK 2 M (1).

BE Group's President and CEO, Kimmo Väkiparta, comments on the report:

“The second quarter developed largely in accordance with the pattern established
previously. The reduction in tonnage compared with the year-earlier period is
mainly attributable to our having chosen a higher margin over volume sales in
Central Europe, and to Business Area Sweden being affected by a lower number of
trading days. However, demand in the Swedish market continues to gradually
improve, while Finland is showing largely unchanged volumes, despite a weak
market.

The average sales price for the quarter was slightly higher than in the
preceding quarter, mainly as a consequence of increased sales prices on
stainless steel and a change in product mix. At the same time, the competitive
situation, primarily for flat products, remains challenging, which has
contributed to a somewhat lower gross margin. In parallel, the structural
measures that we implemented in the Group last year have significantly improved
our cost structure, affecting results for the period positively.

The outlook for the second half of the year is mainly positive. We expect
somewhat improved demand in our principal markets. At the same time, our
position as the largest independent player in the Swedish and Finnish markets is
being strengthened as a consequence of the ongoing structural changes in the
industry. Going forward, our focus will be on a high level of market activity
and strengthening margins.”

For further information, please contact:

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

Andreas Karlsson, CFO tel.: +46 (0)709 482 233  e-mail:
andreas.karlsson@begroup.com

Today, at 09:00 a.m. CET, Kimmo Väkiparta and Andreas Karlsson 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/wv2kb7ia

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 about 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