Strong krona dents Setra's Q1 profitability

The loss, from sales of SKr945m (2012: SKr1.06bn), is almost the same level as the first quarter last year - SKr27m.

The results are a reflection on the strong Swedish krona, which is eroding Swedish sawmillers' profitability at a time of challenging market conditions.

Stefan Lundin, Setra's acting CEO. said the strengthening krona had negatively affected the operating results by more than SKr20m.

"The small price increases we noted in several of our key export markets during the period were eaten up by what for us was the negative exchange rate development," he said.

However, Mr Lundin said that despite a cold spring, the group's sales to the Swedish building materials trade developed satisfactorily.

"We have a good balance between production and sales and our stocks of finished goods is at an unchanged low level," he said.
"Despite a fall in sawlog prices during the past year, there is still an imbalance in the relationship between raw material prices and selling prices for sawn timber."