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BE Group's board decides to closes loss-makers in Czech Republic and Slovakia.

NORDIC BUSINESS REPORT-March 30, 2016-BE Group's board decides to closes loss-makers in Czech Republic and Slovakia

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BE Group AB (STO:BEGR.ST) announced on Wednesday that its board of directors has decided to restructure the company's businesses in Czech Republic and Slovakia.

Reportedly, this restructuring is in line with the company's efforts to improve profitability and to focus on its main markets in Sweden, Finland and the Baltics.

According to BE, the market in Czech Republic and Slovakia has for a number of years developed negatively and its businesses there have continued to be loss making despite several measures taken to reach profitability.

The turnover in these markets was SEK382m during 2015 and the operating result amounted to a negative SEK32m, including non-recurring items of a negative SEK20m.

As a result, against this background and the prevailing weak market outlook, BE has decided to close down the business in Slovakia and stop selling flat carbon steel and aluminium on the Czech market.

Also, the one-time cost is estimated at SEK45m, of which SEK10m will affect the cash flow. The cost will also impact the current year result. An updated assessment will be given when the result for the first quarter is published, the company added.

The profitable business in Prerov, Czech Republic, which successfully provides the market with cutted round bar is not affected by the decision.

BE Group is a trading and service company in steel, stainless steel and aluminium. It offers efficient distribution and value-adding production services to customers primarily in the construction and engineering sectors.

(EUR1.00=SEK9.24)

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Publication:Nordic Business Report
Article Type:Brief article
Geographic Code:4EXCZ
Date:Mar 30, 2016
Words:281
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