Setra records SKr134m annual profit

Setra has recorded an annual operating profit of SKr134m (2009: SKr327m loss) and declared 2010 as a positive year despite ending on a weak note.

Net sales rose 12% to SKr4.61bn (2009: SKr4.1bn) due to higher prices. Operating profit for the fourth quarter was SKr20m (2009: SKr40m).

“The stable earnings trends shown by Setra until the end of the third quarter, reversed during the final months of the year,” said Börje Bengtsson, Setra president and CEO.

“The market for wood products was weak in the fourth quarter and future prospects are uncertain. The period was characterised by falling market prices, an increased build-up of stocks and raw material prices which on the basis of the market’s ability to pay are far too high for long-term profitability to be achieved.”

North Africa and Middle East markets have become increasingly important for Setra, accounting for 20% of the group’s sales.

“The uncertainty factor for future market development is the political events in Tunisia and how these might affect economic stability in the region.”