Operating revenues also increased in the third quarter in all three divisions and ended at NOK 1,589 million (1,391). The continuing favourable market trend and the increase in market shares in certain segments are the main reasons for the increase in revenues.

 

- In addition to the positive market conditions, a significant part of the improvement is due to a number of internal cost-cutting measures, which are having the desired effect. We are registering the fact that some time has past since we last carried out purchases, and that our business units are working increasingly better together. Even so, there is still more potential to be gained from these measures, and so we are continuing to work hard in this area, says President and CEO Hans Rindal in Moelven Industrier ASA.

 

Mr. Rindal says that a large share of the efficiency measures is part of a multi-year investment programme involving long project phases. Just last week, Moelven Våler AS reported that they would be investing a total of NOK 65 million in a new sorting plant as a step in this investment programme.

 

After the first three quarters, operating revenues totalled NOK 4,862 million, compared with 4,477 for the same period last year. Operating profit totalled NOK 223 million (113), while ordinary pre-tax profit was NOK 193 million (76). Profit after taxes and minority interests totalled NOK 139 million (46).

 

- We have achieved a net operating margin of 5.1% for the third quarter alone and 4.6% overall for the three last quarters. It has been a long time since we have had such high figures. With the favourable market conditions that we are now experiencing, we need to continue to perform at this level if we are to maintain our position in the long term, says Mr. Rindal.

 

The positive market trend in the rate of construction activity for both housing and commercial buildings is expected to continue in the Scandinavian countries well into 2007, even though activities in Norway and Denmark may currently be at a peak level. In Sweden, a high level of market activity is expected for some time to come, and this will have a particularly positive impact on the Moelven divisions Wood and Building Systems.

 

In the Building Systems division, the backlog of orders is higher than normal, and it has been necessary to implement measures to increase production capacity. Access to raw materials for the sawmill plants continues to be satisfactory in most regions, and demand for sawn timber in Europe is expected to remain at a high level. Overall, the Board expects a significantly higher result in 2006 than for the year before.

 

For more details:
President and CEO Hans Rindal, +47 90 69 69 10

CFO Morten Sveiverud, +47 90 98 06 67
Communications Advisor Tom E. Holmlund, +47 91 668 668

 

The full report including tables can be downloaded from the following link: