Solid first quarter result for Moelven
Moelven posted one of the Group's best first quarter profit figures, reporting NOK 51 million in operating profit and a 3.3 per cent operating margin. The operating profit for the same period last year was NOK 3 million. The total profit figure for the past 12-month period is NOK 200 million.
A combination of a general improvement in market conditions and the successful implementation of a wide range of internal efficiency measures have been the main factors contributing to the favourable results. "The various measures have primarily been aimed at increasing the efficient use of raw materials, better coordination of the value chain among the various Moelven companies and a more suitable adjustment to market conditions. Even though many of the measures also generated positive effects in 2005, there are still gains to be realised in the course of 2006," says President and CEO Hans Rindal of Moelven Industrier ASA.
Operating revenues increased in all divisions during the same period and ended at NOK 1,557 million for the Group overall, compared to NOK 1,411 million for the first three months of last year. Ordinary pre-tax profit totalled NOK 42 million (NOK -11 million for the same period last year), and net finance items totalled NOK -9 million (-14). Profit after taxes totalled NOK 30 million (-8), corresponding to NOK 0.23 per share (-0.06).
Pleased President
Moelven's President and CEO is pleased with the financial figures thus far this year. - The overall picture is that several of our companies that have had trouble in the past seem to have come to grips with the challenges they faced. Since the market situation now is quite favourable and has been good for some time for most of our companies, I think one of the reasons for the higher profit figures is that more of our companies are now contributing positively to the overall financial figures than earlier, says Mr. Rindal.
NOK 200 million for past 12-month period
Mr. Rindal explains that even though market conditions are now very favourable, the three first months of the year have traditionally been a very slow period for the building trade compared to the rest of the year. - If you look back at the past 12 months, we have delivered a profit figure equalling an annual result close to NOK 210 million. This has not been our habit in recent years, says Mr. Rindal.
Mr. Rindal emphasises that the higher profit figure should not be viewed as a sensation. - An annual operating profit of NOK 200 million or more is exactly where we need to be if we want to survive in the long run, says Mr. Rindal.
Outlook
The solid market conditions for the building trade are expected to continue in Scandinavia throughout 2006. In the Building Systems division, the backlog of orders is higher than normal, and it may be necessary to implement measures to increase production capacity at some sites. For business units dependent on timber deliveries, access to raw materials has been satisfactory in most regions, and the demand for sawn wood in Europe is expected to remain at a high level. Overall, the Board expects that the year-end result will be somewhat higher in 2006 compared to the previous year.
Contact:
CEO Hans Rindal, mobil +47 90 69 69 10
The full report including tables can be downloaded from the following link: