Setra posts growth in profit
Wood products company Setra has reported an operating profit of SEK 92 million (33) for the first quarter of 2018. Net sales totalled SEK 1,130 million (1,007).
“We’re reporting an operating profit of SEK 92 million for the first quarter of 2018, which is an improvement of SEK 59 million on the previous year. This increase reflects the continued positive development of the wood products market, which has enabled us to increase sales prices as well as sales volumes. During the first quarter, we were affected by disruption to timber flows to our production units resulting from severe winter conditions and lack of capacity in the transport sector, which impacted negatively on production volumes as well as profit. We envisage a continued strong market for wood products and good demand among our customers moving forward,” said Hannele Arvonen, President and CEO at Setra.
The Stetra Board has decided to invest in the manufacture of components and CLT in Långshyttan. These investments enable the creation of a new wood industry centre in Långshyttan, in addition to the further development of existing glulam production. Through investments, Setra is taking a step towards boosting processing capacity and reinforcing its long-term competitive edge in the wood industry.
Cash flow from operating activities in the first quarter was SEK 30 million (-28). The Group’s financial position is strong. The Group’s financial net debt amounted to SEK 29 million (2) at the end of the period, which corresponds to a net debt/equity ratio of 2% (10).
The annual general meeting of Setra Group AB was held today, where it was resolved to issue a dividend of SEK 1.12 per share for the 2017 financial year – approximately SEK 58 million in total.
| Key figures | Jan–March (3 months) | ||||||
| 2018 | 2017 | ||||||
| Net sales, SEKm | 1,130 | 1,007 | |||||
| Operating profit, SEKm | 92 | 33 | |||||
| Profit after tax, SEKm | 70 | 23 | |||||
| Operating margin, % | 8.1 | 3.3 | |||||
| Return on operating capital, %, 12 months | 15.8 | 12.1 | |||||
| Cash flow from operating activities, SEKm | 30 | -28 | |||||
Setra does not publish a complete quarterly report.
For further information, please contact:
Hannele Arvonen, President and CEO, phone +46 (0)8 705 03 10, mobile +46 (0)70 618 19 17
Anders Marklund, CFO, phone +46 (0)8 705 03 03, mobile +46 (0)70 284 47 96
Setra is one of Sweden’s largest wood products companies. We process raw material from responsibly managed forests and offer climate-friendly products and solutions for building and living in a global market. The Group has approximately 800 employees and annual sales of approximately SEK 4 billion. Exports to Europe, North Africa, the Middle East and Asia account for about 60% of sales. Read more at www.setragroup.com.