Metsäliitto Group has reported a giant boost in profitability, recording €345m pre-tax profits in 2010 compared to losses of €329m in the previous year.
The result included €52m fourth-quarter pre-tax profits (2009: €18m loss). Annual sales reached €5.37bn (2009: €4.83bn).
Metsäliitto’s wood products division, which includes the Finnforest business, recorded annual sales of €902m (2009: €806m), while operating profits were €23m (2009: €47m loss).
The company said the wood products market improved throughout the year, with demand slowing in the final few months resulting in sawmill curtailments. Prices grew in the first half despite demand remaining relatively low.
A pick-up in the transport equipment industry during the third quarter boosted the birch plywood business, while demand for special products for the joinery industry and tailored components continued to be good.
“In consumer and retail trade, overall sales remained at the same low level as in 2009,” it said. “Sales were low in the UK in particular.”
The company said the UK government’s cost-saving measures and general low level of construction activity had negatively impacted demand.
“Instead of seeking growth, retail trade focused on improving profitability.”
Metsäliitto said it expected no significant change in overall demand for wood products during 2011, with the year being “challenging” due to the decrease in sawn timber profitability. “But financial performance is nevertheless expected to remain at the level of 2010,” it said.
