Continued strong earnings for Setra

Continued strong earnings for Setra

Setra, Sweden’s largest wood products company, reports a continued strong profit trend for the third quarter of 2006. Operating profit of SEK 125 million (-61) for the first nine months of the year represents an improvement of SEK 186 million compared with the same period in the previous year. The improved earnings are an effect of a higher gross profit margin and ongoing efficiency enhancements.

“Our strong cash flow is particularly gratifying,” says Kent Torwald, President and CEO. This is a result of the positive profit trend as well as active internal efforts to reduce tied-up capital.

Cash flow from operating activities amounted to SEK 266 million (-76).

Consolidated net sales for January-September amounted to SEK 4,257 million (3,946). The increase was mainly due to higher prices.

Kent Torwald: “Raw material prices were raised during the quarter by an average of 7%, but continued strong demand in all our main markets meant that we were able to retain our operating margins. We expect the positive profit trend to continue in the fourth quarter.”

The market launch of ‘Trälyftet’, Setra’s construction system for multi-storey buildings in solid wood, continues.
“The fact that this building system attracts both customers and contractors is confirmed by the recent announcement of ‘Trälyftet’ as the winner of SABO/HBV’s nationwide competition ‘New building in wood’,” says Kent Torwald. “This award provides support for continued commercialisation of ‘Trälyftet’ and our aim to raise the value added of wood through innovative product development.”

The complete interim report is published at www.setragroup.com under the heading “Financial reports”.