Setra’s report for the period January-September 2011
Wood products company Setra reports net sales for the first nine months of 2011 of SEK 3,400 million (3,488) and net sales for the third quarter of SEK 974 million (1,174). Operating profit for the period January-September amounted to SEK 1 million (204) and SEK 9 million (69) for the period July-September. The decline in earnings compared with the previous year is mainly explained by an imbalance between selling prices and raw material costs.
“The international market for wood products is still characterised by very considerable uncertainty,” says Börje Bengtsson, President and CEO of Setra. “Construction in Setra’s main markets in Europe remains at a low level and the public finance crisis is contributing to growing fears of an economic downturn.”
“The North African market is a positive exception from otherwise very weak demand. The situation has gradually stabilised after the turbulence in the early spring and there are also expectations that sales to Libya will get under way.”
“Against the background of the very weak market development for the wood products industry, I am pleased that Setra is able to report a profit of SEK 9 million for the third quarter,” says Bengtsson. “Demand for sawn timber is receding, stocks are growing and raw material prices remain at a level that is far too high in relation to the market’s ability to pay.”
“We see ahead of us a continued tough autumn and winter for sawn timber,” says Bengtsson. “Setra has already implemented local production cutbacks for the autumn and we have also planned to close down production at all sawmills between Christmas and New Year. Taken overall, these measures will reduce production by approximately 90,000 cubic metres of sawn product during the fourth quarter.”
KEY FIGURES (SEKm) July-Sep 2011 (2010) Jan-Sep 2011 (2010)
Net sales 974 (1,174) 3,400 (3,488)
Operating profit 9 (69) 1 (204)
For further information, please contact:
Börje Bengtsson, President and CEO, telephone +46 8 705 03 10, mobile +46 708 28 49 87
Stefan Lundin, CFO, telephone +46 8 705 03 01, mobile +46 702 22 65 07
Setra does not publish complete interim report.
Setra is one of Sweden’s largest wood products companies and a leading player in Europe. We offer eco-certified wood products for interiors and construction to customers in the building materials trade and industry. Setra has 1,100 employees and annual sales of approximately SEK 4.6 billion. Exports to Europe, North Africa, the Middle East and Japan account for almost 60% of sales.
Press contact: Lotta Löwhagen Lundberg, , +46 706 54 13 44