Sweden-based BE Group, a trading and service company for steel and other metals in Europe, has issued its financial results for the fourth quarter of 2010, stating that the development of the company was weaker than expected in the period in question.
According to the financial results, the operating loss of the company was SEK 8 million ($1.23 million) in the fourth quarter of 2010, compared with an operating loss of SEK 33 million in the same quarter of 2009.
Consolidated revenues in the fourth quarter of 2010 increased by 37 percent year on year to SEK 1.38 billion ($212.72 million).
BE Group's sales for the full year of 2010 rose by 19 percent to SEK 5.13 billion ($791 million). Operating profit improved and amounted to SEK 98 million ($15.11 million) compared to loss of SEK 266 million in the previous year.
"For BE Group, the demand trend in the fourth quarter was weaker than expected. In addition, a weak price trend, combined with an unfavorable sales mix, resulted in an unsatisfactory margin level. The quarter was also impacted by higher costs than expected, including a cost of SEK 8 million for bad debts," said Roger Johansson, CEO of BE Group.
"Since the start of the new year, we have noted a certain increase in demand. Combined with the increases in steel prices indicated for the first half of the year, this suggests a more favorable market climate, which will benefit BE Group," commented Mr. Johansson.