BE Group Q3 – Increased Operating Result and Continued Improvements

Regulatory News:

• Net sales fell by 10 percent compared with the year-earlier period, amounting to SEK 916 M (1,020). Shipped tonnage decreased by 6 percent.
• The operating result rose to SEK 13 M (6) and the underlying operating result improved to SEK 18 M (15).
• Profit after tax for the continuing operations was SEK 1 M (loss 5) and the operating loss from discontinued operations was SEK 2 M (85).
• To increase the market focus on BE Group’s core operations in Sweden and Finland, a change in the organization of the Group was implemented during the quarter.
• The Board of Directors will recommend a rights issue of approx. SEK 150 M.

The President and CEO of BE Group, Kimmo Väkiparta, comments on the report for the third quarter of 2013:

"In our Swedish operations, demand following the vacation period stabilized at the same level as in the second quarter. In Finland, we are pleased to have seen a slight improvement following the vacation period. The sales price trend for the quarter was weakly negative. For certain products, however, steel prices rose after the vacation period.

The operations within Other Units also developed favorably.

The Group’s cost level has been significantly reduced, which is a major reason behind the improved operating result. It is satisfying to see the effects of our own rationalizations and structural changes.

In the final quarter of the year, we expect that, up until the seasonal downturn towards the end of the year, demand will remain at the level that was established following the vacation period. Signals from customers are currently positive regarding development of the demand for the year 2014. Sales prices are expected to rise somewhat as a result of higher steel prices. Implemented efficiency improvements are gradually strengthening the Group’s competitiveness and, at the same time, entail a leverage effect when the economy improves. The implemented streamlining of the Group increases market focus on our core operations in Sweden and Finland.”

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.

http://www.media-server.com/m/p/exyc4fci

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 2012, the Group reported sales of SEK 4.6 Bn. BE Group has more than 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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