Setra reports growth in profit for 2018
Wood products company Setra is reporting an operating profit of SEK 310 million (159) for 2018. This figure includes non-recurring items of SEK -45 million (-20). Net sales totalled SEK 4,480 million (4,139).
“We’re reporting an operating profit, adjusted for non-recurring items, of SEK 355 million for 2018, which is an improvement of SEK 176 million on the previous year. The favourable market conditions of 2017 continued in 2018, despite a decline in consumption during the final months of the year, primarily in China and on the North African markets. We envisage continued good demand among our customers in Europe as well as recovery in China and Egypt above all,” said Hannele Arvonen, President and CEO at Setra.
In the fourth quarter of 2018, Setra began to process the timber damaged by fire at its sawmill in Färila, with the initial results indicating good quality.
The production of components for doors and windows in Långshyttan got under way at the end of 2018. The strategic investments in CLT, in Långshyttan, and a new trim saw with integrated planing machine, in Hasselfors, are expected to begin in 2020. Moreover, work on a preliminary study regarding production of pyrolysis oil beside the sawmill in Kastet is in progress.
In October, Setra began the process of decommissioning Rolfs, in Kalix.
Cash flow from operating activities for 2018 amounted to SEK 426 million (288). The Group’s financial position is strong, with net financial debt amounting to SEK -121 million (-28) at the end of the period, which corresponds to a net debt/equity ratio of -8% (-2).
The Board of Directors proposes a dividend of SEK 2.23 per share for 2018, equivalent to SEK 115 million.
|Key figures*||Oct.–Dec. (3 mos)||Jan.–Dec. (12 mos)|
|Net sales, SEKm||1,155||1,112||4,480||4,139|
|Operating profit, excl. non-recurring items, SEKm||68||72||355||179|
|Operating profit, SEKm||23||52||310||159|
|Profit after tax, SEKm||-1||41||230||116|
|Operating margin, excl. non-recurring items, %||5.9||6.5||7.9||4.3|
|Return on operating capital, %, 12 months||21.6||11.4|
|Cash flow from operating activities, SEKm||108||66||426||288|
Setra does not publish a complete year-end 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
Johanna Gydingsgård, CFO, phone +46 (0)8-705 03 03, mobile +46 (0)72-453 85 41
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 around SEK 4 billion. Exports to Europe, North Africa, the Middle East and Asia account for about 65% of sales. Read more at www.setragroup.com