Setra reports loss for 2012 due to weak business climate

Wood products company Setra reports net sales of SEK 4,069 million (4,476) for the full-year 2012. Net sales in the fourth quarter amounted to SEK 951 million (1,076).

The operating loss for the period January-December amounted to SEK 80 million (42), of which SEK 20 million related to restructuring costs for the closure of the Horndal sawmill. Operating loss for the fourth quarter, excluding restructuring costs, amounted to SEK 36 million (54).

“2012 will go down in history as one of the toughest-ever years for the export-dependent Swedish wood products industry,” says Johan Padel, President and CEO of Setra. “Weak demand for wood products and a strong Swedish krona have put considerable pressure on profitability in the industry. The fourth quarter is normally weak but this year the seasonal downturn was exacerbated by sawlog shortages and production shutdowns. It is gratifying that we have a positive cash flow from operating activities of SEK 100 million, mainly due to stock reductions.

“Sales to the North African market, which accounts for approximately 20% of Setra’s total sales, remained stable during the year. Our sales to the Swedish building materials trade business showed positive development and we strengthened our position in central Sweden,” says Padel.

“The market situation is fragile but the recovery we can see in the North American construction market could be an indication that the balance in the international wood products market is improving,” says Padel.

KEY FIGURES, SEKm     Oct-Dec 2012                     Jan-Dec 2012

Net sales                              951 (1,076)                         4 069 (4,476)                     

Operating profit/loss            -56 (-43)                              -80 (-42)

Profit/loss after tax              -72 (-35)                              -116 (-59)

SOME IMPORTANT EVENTS IN 2012:

-          Johan Padel took over as the new President and CEO on 1 August.

-          Michael Bertorp was elected as the new Chairman of Setra’s Board of Directors in November.

-          Three new group management members were appointed: Jonas Björnståhl, Head of the Redwood business area, Pontus Friberg, Business Support Director and Olle Berg, Market and Business Development Director (takes up his position on 1 February 2013).

-          A new trimmer was inaugurated at Skinnskatteberg sawmill, a total investment of SEK 60 million.

-          SEK 37 million investment in new drying capacity at the Hasselfors sawmill was completed

-          Closure of the specialised Horndal sawmill in Avesta municipality started in the autumn.

-          The subsidiary Plusshus phased out the box unit factory in Arvidsjaur, Sweden, and started up a new modular building factory in Renholmen outside Skellefteå, Sweden.

For further information, please contact:

Johan Padel, President & CEO, telephone +46 8 705 03 10, mobile +46 702 14 82 44

Stefan Lundin, CFO, telephone +46 8 705 03 01, mobile +46 702 22 65 07

Setra does not publish a complete year-end report.

Setra is one of Sweden’s largest wood products companies and a leading player in Europe. We offer eco-certified wood products for interiors and construction to customers in the building materials trade and industry. The Group has approximately 1,000 employees and annual sales of SEK 4 billion. Exports to Europe, North Africa, the Middle East and Japan account for almost 60% of sales.

Press contact: Lotta Löwhagen Lundberg, lotta.lowhagen.lundberg@setragroup.com, +46 706 54 13 44

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