Low volumes knock Setra’s Q1 profits

“We’re reporting an operating profit of SKr83m for the first quarter of 2019, which is SKr9m lower than the previous year,” said Hannele Arvonen, president and chief executive officer of Setra.

“The fall in profit is mainly due to lower delivery and production volumes.”
Market conditions have gradually become more challenging since the last quarter of 2018. The decline in price has to a certain extent been compensated by foreign exchange developments during the first quarter. Good access to timber – spruce in particular – in both Scandinavia and central Europe is putting pressure on prices on the European market.

Setra has had a high level of export to the Middle East and North Africa, primarily Egypt. Deliveries to China have also been lower compared with the same period in 2018, but are expected to increase. The strategic projects in Långshyttan and Hasselfors are progressing as planned.

At the end of March 2019, negotiations were concluded between Setra and all trade unions at Setra Rolfs. The outcome was as previously announced; that Rolfs sawmill is to be closed down. Production will continue up until the holidays.