Moelven posts third-quarter loss

Moelven has posted a loss of NKr15.4m for the third quarter after recording low activity in its export markets.

Operating sales for the quarter were NKr1.93bn. For the first nine months of the year its operating profits were NKr14m (2010: NKr278m).

“This is an unsatisfactory result for Moelven,” said president and CEO Hans Rindal.

“The loss is a result of a combination of factors. The market conditions internationally combined with losses on individual projects have led to a negative result this quarter.

“However, there are good results from some of the activities in all three divisions, but unfortunately they are not good enough to compensate for the losses in the third quarter.”

Moelven said demand for timber-based building products had been satisfactory in the new build and renovation markets in Norway and Sweden.

Mr Rindal said poor international timber demand had negatively impacted prices, resulting in an unsatisfactory gross margin.

“If we manage to stay ahead of the game in terms of costs, then we also will not need to make so many capacity adjustments,” he said. “At the moment, we see that both the raw material costs and overall production in the sector are on the decline, which will help.”

Looking ahead, Moelven expects to record a positive result in the fourth quarter but a loss is likely for the full year.

Meanwhile, Moelven has just signed an agreement to acquire laminated wood window component manufacturer H-Profil. Moelven currently supplies the window industry but said laminated components would be a good supplement to its existing products.