Metsäliitto returns €250m profits

Metsäliitto Group, which includes the Finnforest business, has reported first-half operating profits of €250m (2009: €128m loss).

Chief executive Kari Jordan said the growth indicated Metsäliitto had weathered the worst of the recession in good shape and that improved market conditions suggested the third quarter would also return a favourable result.

The wood products division recorded operating profits of €11m, compared to a €35m loss a year ago, mainly due to a positive development in sawn timber prices. The division’s sales were slightly up on last year at €448m.

The group said sawn timber supply and demand were in balance, with demand for all timber grades expected to remain good in the near-term.

“The demand for industrial processed products improved slightly in the second quarter, but overall demand was still at a relatively low level,” it said.

“The performance improvement seen in processed products and engineered wood products was partly weakened by the rapid increase in raw material prices, which could not be transferred in full to the prices of finished products.”