Setra reduces first half losses
13 July 2012Setra’s second-quarter operating profits have fallen to SKr29 from SKr40 last year but the company remains buoyed by its performance, given the economic climate.
"In view of the current strained market conditions for the Swedish sawmill industry, it is highly gratifying to be able to report a positive operating result," said president and CEO Börje Bengtsson.
Net sales for the second quarter were SKr1,172m (2011: SKr1,324m) and net profits down by SKr8m to SKr13m, but for the first half operating profits were SKr2m, compared with an SKr8m loss in 2011. The net loss for the first six months was reduced by SKr6m to SKr16m.
Mr Bengtsson said Setra's markets in north Africa and the Middle East continued to develop well but sales in Europe remained tentative because of weak construction activity. Sales to the Swedish building material trade were "satisfactory" despite a wet and cold early summer.
"Despite a hesitant rise in market prices, we see no signs of an economic turnaround," he said. "Demand in the construction markets remains weak and we therefore expect a continued tough period in the international wood products market."
- Johan Padel, formerly managing director of Moelven Timber, has been appointed as Setra's new president and CEO to succeed Börje Bengtsson, who is retiring. Mr Padel joins the company on August 1.
