Nordic sawmillers report challenging results

Moelven Industrier, Setra, Södra, Holmen and Vapo all recorded losses in their timber divisions for 2012. Metsä Wood and SCA's forest products division posted a profit, though the latter also factors in several non solid-wood products.

Moelven's annual losses after interest and tax were NKr47m (2011: NKr86m). Moelven described the result as "unsatisfactory", caused by challenging market conditions in its sawmill division and losses linked to Moelven Elektro.
Sales totalled NKr8.12bn (2011: NKr8bn).

Weakness in the euro contributed to reduced profitability in the export-oriented sawmills.

"In the first quarter of 2013, we will return a loss, but after that we expect to start seeing positive results from many of the areas we are currently working on and expect to influence," said Hans Rindal, Moelven CEO.

Setra posted an operating loss of SKr80m (2011: -SKr42m). Its sales reduced to SKr4.06bn (2011: SKr4.47bn).
SKr20m of the losses related to restructuring costs for the closure of the Horndal sawmill. Operating losses for the fourth quarter were SKr36m (2011: -SKr54m).

"2012 will go down in history as one of the toughest-ever years for the export-dependent Swedish wood products industry," said Johan Padel, Setra president and CEO.

"The market situation is fragile but the recovery we can see in the North American construction market could be an indication that the balance in the international wood products market is improving."

For more on this results story see the next issue of TTJ.