Steel demand in Europe’s Nordic region is likely to continue to improve at a slow pace, says Sweden-based distributor BE Group in its outlook on the fourth quarter.
The manufacturing industry is expected to show a positive development, Kallanish notes. Activity in the construction market will be driven primarily by industrial and infrastructure-related projects, while residential construction remains subdued, BE notes.
In Q3, the Nordic steel market was characterised by a gradual but uneven recovery. Activity in the manufacturing industry was more stable than in the previous year, but demand varied and planning horizons remained short, BE observes.
The listed company saw its revenue in the first nine months of the year increase to SEK 3.05 billion ($310 million), up by SEK 43m compared with the same period last year. Operating profit was SEK 10m, following a loss of SEK 61m in the previous nine-month period.
The items affecting comparability relate to restructuring costs for the consolidation of the sheet metal processing operations in Finland from Lahti to Lapua. BE expects the measure to strengthen its offering and competitiveness and improve Ebit by approximately SEK 20m annually, with full effect from 2028.
Joint venture ArcelorMittal BE Group SSC AB made a positive contribution to the group’s earnings, BE adds, without giving details.
