Annual Report 1011 - The Stena Metall Group

CHIEF EXECUTIVEOFFICER’S COMMENTSeeAnders Janssoncomment onthe past year*2010/2011 brought with it an increase in both sales volumes and market shares. This was despitetight competition and widespread economic uncertainty. The Stena Metall Group’s profit wasSEK 525 million before tax, an increase of 16 percent compared with the previous year.The conditions faced by our businesses fluctuatedin 2010/2011. Fall 2010 started out on a positivenote, but was followed by a harsh winter thatimpacted most of our businesses. Conditionsbrightened in the spring, with improvementsacross the board. Our hopes were dashed,however, when uncertainty increased in thefinancial market. This would come to definethe latter part of our financial year.Our philosophy of delegated business acumenwith independent, service-oriented branches inmore than 250 locations close to our customersserves as the key to the Stena Metall Group’sdevelopment. It has been impressive to see theenergy and commitment of our employees inthe last year. We continue to invest in our businessesand in the development of our employees.Because of this, I feel confident in our ability toproduce economic benefits for our customersand ourselves even in tough times.Business developmentIn our recycling operations, we have seen goodvolume growth and stronger market shares.Our offering has been expanded to include newproducts and services. Today we provide bothindustry-specific and customized solutions forevery sector of society under the name StenaSolutions.In Sweden, an expanded offering, combinedwith an increased focus on efficiencies, has contributedto our continued positive development.Focused business acumen and customizedwaste management solutions produced significantgains in the Polish recycling operationsduring the year. We now have a solid foundationfor continued growth.Our Norwegian recycling business had its bestyear ever. At the start of the current financialyear we acquired Norsk Metallretur, Norway'sleading recycler of ferrous and non-ferrousmetals, to complement our current operationsand give us an exciting base for further growthin the Norwegian market.Our Danish recycling operations continue todevelop well and gain market share. As part ofthe effort to strengthen our positions in theDanish recycling market and complement ourproduction structure, we acquired a shreddingfacility in Grenå, on Jylland, early in the currentfinancial year.Our electronics recycling operations, WEEE,had a tough year in the face of stiff competition,fluctuating volumes and price volatility in manymarkets. In spite of this, we improved our positionsin a number of areas and are especiallypleased with developments in the Nordic regionand Italy.Stena Stål has performed well and improvedits profitability in a changeable market in recentyears. We have expanded our range of productsand services, including through the acquisitionof AHAB Steel, which operates in the coil metalsegment.By utilizing strong business acumen, StenaAluminium improved its earnings and thequality of its offering. Close cooperations withcustomers, where Stena Aluminium analyzestheir technical support and training needs, werea continued success.In an extremely volatile and uncertain financialmarket, Stena Metall Finans generated anacceptable result given the circumstances. At thesame time we were able to utilize our knowledgeof the Nordic bond market to secure additionalfunding and extend the maturity profile of theloan portfolio.Stena Oil continued to report good volumesand strengthened its market shares, especiallyin its new market outside West Africa.Stena Metal Inc. generally had a good yearand reported a satisfactory profit. It also beganto broaden its offering to include new products.Innovation leads to profitabilityOur position is that we are never better thanwhat people think of us. Three words – simplicity,reliability and development – sum up the aim ofour work at every level. Working with Stenashould be easy for customers. They shouldexpect quick decisions and results.We also want to communicate to customersthat our long experience and wide range ofexpertise make us a safe choice and a supplierthat keeps its promises. Our employees areencouraged to think along new lines and be2* You can also watch the film at www.stenametall.se/en/executivesummary