Setra records SKr87m first-half profits

Setra’s profitability improved markedly in the first half with profits after tax of SKr87m (2009: SKr277m loss).

Net sales grew by 9% to SKr2.3bn, reflecting a steady improvement in the wood products market, leading to higher prices.

Setra has now reported positive figures for the third consecutive quarter.

“Efficiency improvements and cost savings in operations also made a positive contribution,” said Setra CEO Börje Bengtsson.

“The order situation is stable and the rate of outgoing deliveries is good ahead of the coming quarter.”

Sawlog prices rose during the spring and raw material supplies have increased. Setra said stocks are currently expected to be good during the second half, although at high prices.

It said positive market signals continue to dominate, although weak financial development in several key European markets and uncertainty about the rate of recovery in construction could cast a cloud over the autumn.