Sweden-based BE Group, a trading and service company for steel and other metals in Europe, has issued its financial results for the third quarter of 2010, stating that sales in the European steel distribution sector rose in the first half of 2010 but, according to statistics for the period through August, declined during the summer months.
According to the financial results, the operating profit of the company was SEK 48 million ($7.3 million) in the third quarter of 2010, compared with an operating loss of SEK 44 million in the third quarter of 2009. Net sales in the third quarter of 2010 increased by 39 percent year on year from SEK 917 million to SEK 1.27 billion ($193.9 million). In the period in question the shipped tonnage rose by 24 percent to 115,000 mt.
After the end of the quarter, BE Group acquired the Swedish steel construction company Lecor Stålteknik. The acquisition is in line with BE Group's strategy to strengthen and broaden its production service offering.
Regarding the market outlook, BE Group commented, "Purchasing prices, and consequently sales prices, will decline somewhat in the fourth quarter. The longer-term price trend is dependent on general demand and production levels among steel producers. Based on current and forecasted levels of activity among customers, BE Group expects continued improvement in demand. The group will also benefit from any increased demand resulting from inventory build-up among customers, although such build-up has not yet been noted to any great extent."