Setra’s operating profits rise to SEK117m for 2020

The company generated operating profit of SEK61m (2019: SEK-87m) for Q4, 2019, with net sales of SEK1.08bn (2019: SEK1bn).

Setra’s earnings improvement of SEK109m for 2020, compared with the previous year, was achieved by lower raw material prices, positive exchange rate effects, lower fixed costs and higher delivery volumes.

At the start of the coronavirus crisis a decision was made to reduce July production, while sawmill production in general continued as normal and without any furloughing of employees.

Sickness absence related to Covid-19 has increased, but has not noticeably impacted operations. Market conditions saw a considerable improvement in the second half of the year.

“Demand in the autumn has been healthy in our markets and these conditions are set to persist into the start of 2021,” said Katarina Levin, Setra’s CEO.

“The Covid-19 situation around the world is serious at the moment, but we are hoping to see a change for the better as the vaccine is rolled out,” she commented.

The beginning of November saw the first significant shipment of planed wood products from Setra’s sawmill in Hasselfors to Setra’s distribution centres in the UK, following completion of a strategic investment in the form of a new trim saw and planing machine.

The cross-laminated timber factory in Långshyttan performed well and will be completing its first major delivery in the next few days, with positive feedback from the customer Veidekke, which is building the Cederhusen apartment block in Stockholm.