Operating revenues for Moelven the first quarter this year totalled NOK 1 951.3 million (1 988.5), and ordinary pre-tax profit was NOK 105.5 million (218.2). The profit figure after taxes and minority interests amounted to NOK 74.6 million (155.7).

 

The economic downturn in demand and falling sawn wood prices compared to timber prices are the main reasons for the decline in operating revenues and profit compared to the previous year. For the Building Systems division, however, market conditions are still good, and the division has increased both operating revenues and profit compared to last year.

 

President and CEO Mr. Hans Rindal is pleased with the financial figures from the perspective of a normal year. - Even though the quarterly profit figure is only half the profit figure for the same period in 2007, the numbers are satisfactory for Moelven from the perspective of a normal market and operating year. It is still among the Group's best quarterly results in recent years, says Mr. Rindal.

 

Mr. Rindal explains that there has been an anticipated decline in demand for sawn wood throughout Europe. The decline started in the second half of 2007 and has had an impact on the Timber division's markets in the first quarter. - In Scandinavia, business activities in the construction markets have normalised following an abnormally active period. Despite market developments, however, the Building Systems division experienced a positive development this quarter, adds Mr. Rindal.

 

The Board expects that the bottom of the decline in demand for sawmill products to be reached in 2008, but that margins will continue to be weak throughout the rest of the year. For the Wood division, business activity in the market for new-builds is expected to slow in Norway and Denmark, while this market is expected to continue to remain at a higher level in Sweden. Business activity in the renovation and maintenance markets is also expected to remain high. As a result of higher timber prices and weaker prices for finished products, margins are likely to weaken for the Wood division. For the businesses in the Building Systems division, however, order reserves at the end of the first quarter were excellent, and a high activity level is expected for this division the rest of the year.

 

For more details:
President/CEO Hans Rindal, cell phone: +47 90 69 69 10

Director of Finances, Morten Sveiverud, cell phone: +47 90 98 06 67
Communications Advisor, Tom Erik Holmlund, cell phone: +47 91 66 86 68

Director of Communications and Human Resources, Kristin Vitsø Bjørnstad, cell phone 90713701