Setra posts SKr42m annual loss

Setra’s newly-published annual results show an operating loss of SKr42m (2010: SKr134m profit), mainly due to an imbalance between selling prices and raw material costs.

Fourth quarter losses hit a high SKr43m (2010: SKr22m profit), due to the impact of substantial production curtailments implemented during the period.

Sales hit SKr4.4bn (2010: SKr4.6bn), with fourth quarter net sales reaching SKr1.07bn (2010: SKr1.1bn).

“The pressure on margins, however, was partly compensated by a 10% increase in delivery volumes of sawn and processed wood products during the year,” said Börje Bengtsson, president and CEO of Setra.

“Despite the political turbulence, the North African market, which accounts for approximately 20% of Setra’s total sales, has provided a stable base for our sales in an otherwise fairly dismal wood products market.”

Mr Bengtsson said North Africa was a region with a young and growing population with a major need to develop housing and infrastructure. “Wood will continue to be an important material in this region.”

Setra’s sales volumes to north European countries such as Germany, the Netherlands and Denmark, increased during the year.

“Setra’s total order backlog at the beginning of the new year is good. This indicates that there can probably be a little light at the end of the tunnel ahead of 2012,” said Mr Bengtsson.