Setra posts first half loss

Swedish solid wood products producer Setra has posted an SKr8m loss for the first half of 2011 (2010: SKr135 profit).

The company said better trading during the second quarter could not fully compensate for a weak first quarter.

The lower earnings were down to lower finished goods prices and higher raw material costs. During the second quarter it recorded operating profits of SKr40m (2010: SKr120m).

Setra president and CEO Börje Bengtsson said sales volumes were satisfactory during the period.

“Ahead of the autumn, the market situation still looks highly uncertain,” he said. “Raw material price increases have been announced and the recovery in the European construction market is protracted.

“The markets in North Africa, which are important to Setra, have largely recovered after the turbulence last winter but the situation is not yet entirely stable.”

Setra has made several investments this year, including a SKr60m new trimmer project at Skinnskatteberg sawmill and a SKr37m extension to drying capacity at Hasselfors.