Setra Group is showing profit

Setra Group, Sweden's largest wood products company, is showing profit for the first quarter.

"The development is satisfactory," CEO Kent Torwald says. "We were helped along by the market, but the improvement is also the result of extensive work within the entire company."

Development compared with the first quarter of 2005
· Net sales increased by 16% and amounted to SEK 1,428 million.
· Operating profit amounted to SEK 24 million, an improvement of SEK 75 million.
· The average number of employees amounted to 1,430 which is a reduction of 60 people.
· Profit after financial items reached SEK 13 million (-63).

CEO’s comments

The result for the period is the best for two years. Operating profit for the first quarter amounted to SEK 24 million. We were helped along by the market, in particular through strong demand for redwood which contributed to a favourable price development. This improvement is also the result of extensive work within Setra with a sharper business focus through efficiency enhancements and efforts related to both costs and revenues.
In line with the strategy for increased value-added, a SEK 16 million investment was decided in the first quarter designed to raise production capacity by 50% in the gluelam factory in Långshyttan.
Setra has made some progress towards long-term profitability. With this first quarter of the year we can see an important trend reversal and clear signs of a positive development with continued earnings improvements for Setra. Earnings must be higher, however, and continuation of the internal process of change is essential.

Kent Torwald
President and CEO