More Nordic mills report higher profits

2 May 2014

Further Nordic sawmillers have reported a good start to 2014.

Moelven posted pre-tax profits of NKr32.9m (2013: NKr69.8m loss), with turnover also significantly up at NKr2.25bn (2013: NKr1.84bn). Moelven said the turnaround was due to improved market conditions, a higher level of activity and internal developments.

“We have gone from genuinely difficult market conditions for sawn timber in a lot of countries, to more normal demand,” said Moelven CEO Hans Rindal. “Some improvement in the international price outlook for sawn timber is expected in the second quarter.”

UPM’s overall operating profits were up strongly to €191m (2013: €81m). In the plywood division operating profits were up to €11m from €4m a year earlier, with delivery volumes at 188,000m3 – a similar level to last year.

Increased profit was due to an improved sales margin resulting from higher sales prices and a favourable sales mix and lower costs. Plywood demand continued to strengthen in the first quarter.

SCA’s forest products division, which includes solid wood, pulp and publication papers, recorded operating profits of SKr586m in the first quarter, up 128% on a year ago. Solid wood product sales were up as a result of higher volumes and higher prices. Solid wood deliveries were up 3% to 537,000m3.