Sonae records €16m Q1 losses

16 May 2013


Sonae’s losses rose to €16m in the first quarter due to lower sales volumes caused by the closure of its Knowsley plant in the UK and Solsona in Spain, as well as a difficult economic environment impacting the furniture industry.

Compared the first quarter of 2012, volumes of its panel products were down 13%, mainly driven by central European markets, as volumes in the rest of the world improved. Sales were down 10% to €318m.

Average selling prices were marginally above a year ago and the fourth quarter of 2012 but efforts to improve product mix were not sufficient to compensate the significant loss in volumes.

Sonae's performance in northern Europe showed an 11% decrease in volumes sold which, combined with lower prices, resulted in a 16% reduction in turnover.

Capacity utilisation in the region was down by 10% mainly in raw particleboard lines.

Production volumes were also impacted by the stoppage of the OSB line at Nettgau in March.

Sonae recorded a strong performance in North America and South Africa, with both these markets registering strong building sector growth.

Sonae's southern European region faced a depressed economic environment due to austerity measures in Portugal and Spain.

Turnover and sales reduced by 11%, driven mainly by Iberian operations.