Metsäliitto Group, which includes the Finnforest business, has said its wood products division made a €25m loss during the first quarter.

Wood product sales totalled €202m, down from €315m a year earlier, with results burdened by a “distorted cost structure as a result of the low capacity utilisation rates.

However, Metsäliitto said the interior decoration and garden range markets have not yet slowed down significantly and satisfactory price levels have been maintained in highly processed products.

The group recorded a loss of €93m before tax and excluding non-recurring items. Sales were €1.27bn, down from €1.71m a year earlier.

In its outlook, the group said cost adjustments would continue in all operations during the second quarter.

“On the other hand, economic stimulus activities are expected to boost the activity in the European construction market, and project order stock in the wood products division is likely to remain at a good level,” it said.