Setra reports increased earnings for the first half of 2017
Wood products company Setra reports an operating profit of SEK 90 million (76) for the first half of 2017. Net sales totalled SEK 2,082 million (2,188). Operating profit for the second quarter amounted to SEK 57 million (67) with net sales of SEK 1,075 million (1,160).
“We report an operating profit for the first half of SEK 90 million which is an improvement of SEK 14 million over the previous year. We have been able to increase both selling prices and sales and production volumes for comparable units,” says Hannele Arvonen, President and CEO of Setra.
Disruptions in the freight market during the spring and the industrial conflict in the Port of Gothenburg had a negative impact on both deliveries and earnings.
“Considering the problematic freight situation with a shortage of containers, the result for the first half is acceptable. Going forward we see continued good demand from our customers and a positive development for the wood products market both in Sweden and internationally,” says Arvonen.
The transaction for the sale of Setra’s sawmill in Vimmerby was completed in January 2017. Last year’s figures include the operations in Vimmerby as well as the subsidiary Setra Plusshus and the planing operations in Valbo, both of which were sold during the second quarter of 2016.
Cash flow from operating activities for the first half of 2017 amounted to SEK 96 million (3). The Group’s financial position is strong even after a dividend of SEK 100 million was paid to shareholders. The Group’s financial net debt amounted to SEK 126 million at the end of the period which corresponds to a net debt/equity ratio of 9% (18).
| Key figures | Apr-Jun (3 mths) | Jan-Jun (6 mths) | |||||
| 2017 | 2016 | 2017 | 2016 | ||||
| Net sales, SEKm | 1,075 | 1,160 | 2,082 | 2,188 | |||
| Operating profit, SEKm | 57 | 67 | 90 | 76 | |||
| Profit after tax, SEKm | 43 | 49 | 66 | 53 | |||
| Operating margin, % | 5.3 | 5.8 | 4.3 | 3.5 | |||
| Return on operating capital, %, RTM | 11.6 | 2.3 | |||||
| Cash flow, SEKm | 124 | 45 | 96 | 3 | |||
Setra does not publish a complete six-month report.
For further information, please contact:
Hannele Arvonen, President and CEO, telephone +46 8 705 03 10, mobile +46 706 18 19 17
Anders Marklund, CFO, telephone +46 8 705 03 03, mobile +46 702 84 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