Interim Report January-June 2007
Substantial profit boost for Setra
Six-month report January-June 2007
• Consolidated net sales in January-June 2007 amounted to SEK 3,325 million (2,971). The increase compared with the same period in the previous year is mainly due to higher prices. During the second quarter, net sales rose 14% compared with the same period in 2006.
• Operating profit for the first half of 2007 amounted to SEK 483 million (86), an improvement of SEK 397 million compared with the first half of 2006. The improvement in earnings is mainly due to a higher gross profit margin as well as completed efficiency enhancements. Operating profit for the second quarter amounted to SEK 322 million (62).
• Profit after tax for the period January-June amounted to SEK 333 million (67). Earnings per share reached SEK 42.19 (8.45).
Kent Torwald, President and CEO, comments:
“The very good operating profit for the second quarter of SEK 322 million means that Setra achieved an historically high operating margin of 18%.
Demand for sawn and planed wood products remained very strong but there are some signs of a weaker trend for whitewood products. The market’s ability to absorb planned or anticipated price increases for raw material will affect development in the future.
As part of efforts to meet the increased demand in the energy market, Setra is now strengthening its organisation for the sale of bioproducts. In addition, 25% of the shares in the biofuel company Naturbränsle i Mellansverige AB were acquired in the second quarter.”
The complete Six-month Report January-June 2007 can be accessed at www.setragroup.com, under Financial reports.