Improved results for Moelven
Moelven Industrier improves on its operating profit for Q3 by NOK 46 million compared to the same quarter last year. The earnings improvement is attributed to operational improvements and more favourable market conditions.
Revenues in the third quarter were NOK 2,028 million (NOK 1,883 million) and operating profit was NOK 18 million (minus NOK 28 million).
Operating revenues thus increased compared with the same period last year, primarily due to higher prices for finished products from the companies in Timber and Wood, and a higher level of activity and improved prices for the Modular Building companies and Glulam.
In the right direction
Acting President and CEO Morten Kristiansen of Moelven Industrier ASA confirms that Moelven is doing better now than last year, and that the group is headed in the right direction.
“This is a satisfactory improvement in results. Specifically, in addition to the rising prices for finished products from Timber and Wood, it is the realisation of operational improvements that are the causes of the improved results. We are now starting to see the results of long-term improvement efforts that have been ongoing in our operations for some time. I am very concerned with telling employees, customers and other important partners that our full attention is on our internal improvement work. There is no letting up,” Kristiansen says.
Strategic focus areas
Corporate management is currently proposing a strategy to the board of Moelven that indicates the direction and the most important focus areas for the group for the next five years.
“A number of Moelven's companies are doing very well, while others have some way to go before achieving their targets. In the strategy plan that applies toward 2019 we have put in place certain general frameworks and measures in order to achieve Moelven's return targets in all of Moelven's units. We will keep up working in order to improve competitiveness,” Kristiansen says.
Everyday efficiency measures
Moelven will first of all have focus on return-based investment requirements. This means that investments beyond simply maintenance will only take place in units which we are confident will meet the requirements.
- Second, there will be considerable focus on everyday efficiency measures. Among other things, this involves identifying improvement potentials and realising these,” Kristiansen says.
Efficient market strategies
Kristiansen explains that the third important measure is to establish cost-effective production structures and efficient market strategies – particularly in the Timber and Wood divisions.
“Our third division - Building Systems - will grow. In terms of structure and expertise our companies in the building systems division have a very good chance of meeting the group's requirements,” Kristiansen says.
For further information please contact:
Acting President and CEO Morten Kristansen, mobile +4791118250
Communications and HR Director Kristin Bjørnstad, mobile +4790713701
Communications Consultant Tom E. Holmlund, mobile +47 91 668 668
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