Brighter times for Nordic sawmillers

By and large, Nordic sawmillers reported improving market conditions, higher selling prices and lower raw material costs, although the high Swedish krona is still a constraint.

As well as the UK, Setra said its volumes to Algeria, Japan and China also rose sharply. Its Q3 sales grew to SKr923m (2012: SKr881m), with operating profits up to SKr27m (2012: -SKr26m).

UPM's forest and timber division saw sales rise 9% in Q3 to €397m, while operating profits, excluding special items, was up to €8m (2012: €7m).

UPM said its sawn timber sales mix was more favourable in Q3, compared to Q2 and cost efficiency improved as a result of restructuring. Sawn timber production and deliveries decreased seasonally, while prices were stable.

The plywood division's sales grew 4% in Q3 to €98m and deliveries rose by 2% to 169,000m3, supported by increased exports outside Europe. Operating profits were €2m (2012: -€3m).

Better timber division results only partly compensated for a weaker Q3 performance for Norway-based sawmiller Moelven Industrier ASA, which recorded a NKr28m loss (2012: -NKr14m).

The company said weaker performances in its wood building products division, laminated timber business and building module operation in Sweden contributed to the loss, as well as costs associated with commissioning a new production plant.

“The market balance for the timber division's sawmills is improving," said Moelven CEO Hans Rindal.

Stora Enso's Q3 results show a 154% improvement in earnings before interest and tax (EBIT) for its timber division during the first nine months of 2013.

The Building and Living division, which comprises sawn timber, cross-laminated timber, wood components and pellets, reported EBIT of €56m for the period (2012: €22m), while Q3 EBIT was €24m, up from just €1m a year ago.

Deliveries grew 3.3% to 3.57 million m3 for the nine months. The growth was 5.5% to 1.15 million m3 in Q3.

SCA Timber delivered 534,000m3 in Q3, up 12% on a year ago, with the forest products division (comprising solid wood, pulp and publication papers) recording a 49% boost in operating profits to SKr420m. Solid wood product sales increased due to higher volumes, partly offset by lower prices.

Holmen Timber said the strong krona hit its results - an operating loss of SKr20m (2012: -SKr23m). Deliveries totalled 500,000m3 for January-September, the same as last year.