Strong profit trend for Setra Group

In the first half of 2006, Setra posted a profit of SEK 67 million, an improvement of more than SEK 130 million year-on-year.

CEO Kent Torwald comments: “The second quarter was the best-ever for Setra. Development was positive within all our customer segments. We can see a continued strong market for both sawn and processed products but are prepared for a lower margin trend as a result of increased raw material costs starting in the third quarter.”

Development compared with the first half of 2005:
- Net sales rose 9% and amounted to SEK 2,971 million.
- Operating profit amounted to SEK 86 million, an improvement of SEK 130 million.
- The number of employees decreased by 75 and amounted to 1,415.
- Profit after financial items amounted to SEK 63 million (-70).
- Profit after tax amounted to SEK 67 million (-67).

CEO’s comments
Setra continues to show a strong profit trend. The second quarter was the best single quarter since Setra’s formation. An operating profit of SEK 63 million means that we showed a profit improvement of SEK 130 million during the first half of the year.
Seasonally, this is a strong quarter in terms of both production and demand. The market is also very favourable with a positive price trend for both redwood and whitewood within all customer segments and markets.
Prices of both sawn and processed timber are expected to continue to rise in the immediate future. At the same time, the positive margin trend will be weakened due to higher raw material costs with effect from the third quarter.
In order to strengthen our market concept for “Trälyftet”, Setra’s system for industrial-scale construction of multi-storey buildings in solid wood., Setra acquired a 15% stake in the building manufacturer Plusshus. This investment is in line with Setra’s focus on raising the value-added level in the company and part of long-term efforts to increase market shares for wood within construction.
Kent Torwald
President and CEO