Steico reports improving trend

Wood fibre insulation board and I-joist manufacturer Steico has reported an improving trend in the first quarter of 2012.

The improved earnings before interest, tax, depreciation and amortisation (EBITDA) of €3.1m (2010: €2.4m) were released at the same time as Steico’s annual results, which show reduced EBITDA profits of €14.8m (2010: €18.1m).

Sales in the first quarter were up 2.8% to €34.4m on a year ago, while 2011 full-year sales totalled €144.8m, a 11.2% growth on 2010.

Steico said bad weather during the first two months of 2012 affected construction activity, but improving weather in March boosted sales performance.

Other factors included a stabilisation of commodity prices, decreasing stress from the commissioning of new production plants (including a new dry-process wood fibre insulation board factory in Poland), as well as positive currency effects.

“Although the intensity of competition is still high in the market for wood fibre insulation materials, management expects a positive construction season from the Steico Group,” it said.

“The results should improve again, with profit margins clearly above 2011 levels.”