Operating revenues for the Group in the second quarter totaled NOK 1 771.7 million (2 202.3), while the operating result was NOK 24 mill (81.3). For the first six months of the year overall, operating revenues totaled NOK 3 227.9 million (4 153.6), while the operating result was minus NOK 66.1 million (plus 191.5).

 

- As is normal for this time of the year, demand for the Group's products and services improved in the second quarter compared to the first, says Mr. Hans Rindal, President and CEO of Moelven Industrier. - Overall, however, demand for the Group's products and services is significantly lower compared to the past two years, the turnover for the Group so far this year is more than NOK 900 million less than last year.

 

The high seasonal activity in the refurbishment and building extension market has helped sustain high demand for the processing business areas in the Group. The Building Systems division has thus far been the least impacted by the economic slowdown, and this is primarily due to their focus on the refurbishment and building extension market, service and maintenance agreements and the fact that the Interior Layout companies provide products and services that are delivered late in the building process. New-build activity is unfortunately very low in all of Scandinavia, both for commercial and residential projects. - There are few major building projects starting up these days, and there is good reason to believe that it will take some time before this situation turns around, explains Mr. Rindal.

 

When it comes to the sawmills, production of industrial wood has slowed in Europe during the first six months of the year. The slowdown in production has exceeded the reduction in demand, which is why prices are now moving upward after having been falling since 2007.

 

In the past year Moelven has implemented significant adjustments to production capacity, and even though there is still a need for cost-cutting measures, the measures that have been taken during the previous two quarters have had a positive impact on the expense level in the second quarter. The Group's expenses are now largely adapted to the present lower production level.

- At the same time I am very happy to see that better market conditions are translating into higher production levels at several plants, and many employees who have been affected by short-term capacity reductions are now back at work full time, says Mr. Rindal.

 

Despite some signs of better times ahead, there are also many signals indicating that the financial crisis will last for some time to come. Mr. Rindal summarizes: - The rate of new-builds is low, general unemployment is on the rise, and we are thus uncertain about developments in the near future. We expect the positive trend to continue in the third quarter, but there will be a winter after that with overall lower production activity. With the adjustments we have already made, however, we are better prepared to face another low season, which is likely to be lower than normal due to the current economic slump.

 

For more information:

President and CEO Hans Rindal: + 47 90 69 69 10
Director of Communications and HR: Kristin V. Bjørnstad, + 47 90 71 37 01