Increasing demand for BE Group

Increasing demand for BE Group 

• Shipped tonnage rose during the latter part of the first quarter. All of BE
Group's business areas reported an operating profit for March.
• Net sales amounted to SEK 1,074 M (1,309), which represents a decline of 18
percent. Shipped tonnage was of a level comparable to that in the corresponding
quarter in 2009.
• During the quarter, the operating result improved to a loss of SEK 28 M (93)
and underlying EBIT amounted to a loss of SEK 8 M (profit 6). 
• Continued improvement in working capital tied-up.
• Price hikes on steel and increased demand in the second quarter will have a
positive impact on BE Group's results.


BE Group's President and CEO Lars Bergström made the following comments
regarding the report:

"During the latter part of the first quarter, the steel producers indicated that
their prices would rise as a consequence of higher prices for raw materials. In
general, prices from the steel mills began to rise in March and the increase has
continued into the second quarter.

The trend in BE Group's markets was characterized by recovery and demand rose
towards the end of the quarter. We are seeing improved economic conditions and
are continuing to increase our deliveries to customers in the OEM segment. That
segment accounts for more than half of our total sales.

Underlying EBITA was affected negatively by the lower price level, although this
was offset to a certain extent by lower overheads resulting from the extensive
cost savings program implemented in 2009. Our efforts to optimize our
inventories are continuing and, during the quarter, the amount of working
capital tied-up decreased to 11 percent. 
Due to the steel industry's price increases, BE Group's sales prices will rise
in the second quarter, which will have a positive impact on results.

A gradual increase in demand was noted in the Swedish market. Pleasingly, in
Finland, we saw a marked increase in demand at the end of the quarter, mainly
from customers in the engineering sector. In the CEE markets, the recovery that
had commenced previously continued and the business area's shipped tonnage rose
by 13 percent compared with the year-earlier period."

A press conference hosted by Lars Bergström and Torbjörn Clementz will be held
in English at 1:00 p.m. for the press and market analysts. 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. Make sure to include the full link.

http://wcc.webeventservices.com/r.htm?e=204781&s=1&k=DAD6B034E791736A30DC58003E6
C8DB3&cb=blank

Those who do not have access to the Internet may register by phone on +46 (0)8
5052 0110 a few minutes before the conference begins.

Lars Bergström, President and CEO
Tel. +46 (0) 40 38 42 00
E-mail: lars.bergstrom@begroup.com

Torbjörn Clementz, CFO and Deputy CEO
Tel. +46 (0) 70 869 07 88
E-mail: torbjorn.clementz@begroup.com 


BE Group, listed on the Nasdaq OMX Stockholm since November 2006, is one of the
leading trading and service companies for steel and other metals in Europe. The
Group has about 10,000 customers, primarily in the construction and engineering
industries. BE Group provides various forms of service for steel, stainless
steel and aluminium applications. In 2009, the company reported sales totaling
SEK 4.3 billion. BE Group has slightly less than 900 employees in nine countries
in northern Europe, where Sweden and Finland are its largest markets. The head
office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com