BE Group Q3 2015 – increased tonnage in Sweden and Finland, despite challenging market

  · Consolidated net sales decreased by 3 percent compared with the same period
last year, amounting to SEK 966 M (998).
  · Shipped tonnage rose in both Business Area Sweden (up 9 percent) and
Business Area Finland (up 3 percent).
  · The underlying operating result improved to SEK 10 M (6).
  · The operating result amounted to SEK -117 M (-3), affected by write-downs of
assets of SEK 124 million.
  · The result after tax was SEK -133 M (-16).
  · Earnings per average number of shares amounted to SEK -0.51 (-0.22).

“We are growing more than the market in both Sweden and Finland. Business Area
Sweden has succeeded best with a 9 percent increase in shipped tonnage. Our
other principal market, Finland, is also growing in terms of tonnage.

The trend from the first half of the year, with stabilized demand in our main
markets, continued in the third quarter. Demand in Sweden is stronger than in
the Finnish market.

The underlying gross margin for the quarter improved to 13.2 percent compared
with 12.5 percent for the corresponding period last year. The combination of
increased volumes and improved margins also means that we can report an increase
in underlying operating profit.

In Other Units, Lecor Stålteknik achieved a stronger quarter following a weak
first half of the year. In the Czech Republic and Slovakia we are experiencing
continued weak demand.

Based on the outcome of the three first quarters we have found that parts of our
business will not reach the targets set for the year. Hence, we have made a new
assessment of the development for the coming years. The overall conclusion is
that write-downs of SEK 124 million had to be recognized. This is distributed on
write-downs of goodwill in Lecor Stålteknik and BE Produktion Eskilstuna of SEK
54 million, write-down of shares in the Group´s joint venture ArcelorMittal BE
Group SSC of SEK 50 million and write-down of tangible fixed assets in Czech
Republic of SEK 20 million.

To sum up, we look back on a quarter in which, with no significant change in
demand, we managed to increase volumes in our core markets. The demand during
the fourth quarter is expected to remain on current levels as the third quarter
adjusted for normal seasonal pattern. We remain focused on developing our
customer relations while continuing to work to increase the competitiveness of
our units.”

Anders Martinsson, President & CEO

For further information, please contact:
Anders Martinsson, President and CEO
tel.: +46 (0)706-21 02 22 e-mail: anders.martinsson@begroup.com

Andreas Karlsson, CFO
tel.: +46 (0)709-48 22 33 e-mail: andreas.karlsson@begroup.com

Today, at 9:00 a.m., Anders Martinsson and Andreas Karlsson will comment on
developments in a press and analyst conference. 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
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The following telephone numbers can be used to participate in the presentation:

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BE Group, listed on the Nasdaq 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 2014, the Group reported sales of
SEK 4.2 Bn. BE Group has approximately 750 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