Moelven CEO Hans Rindal pointed to the fourth quarter figures which show a turnaround in the company’s business – a NKr36m operating profit, which is NKr69m more than for the same quarter in 2012.

The Q4 improvement was primarily the result of a better balance between raw material and finished good prices in the sawn timber market.

“This is a strong finish for a year with poor earnings for Moelven,” said Mr Rindal.

“In terms of results, this is our best fourth quarter since 2009. Obviously we are disappointed that the year as a whole finished with a negative result, but now we are seeing signs in many of our markets that things are picking up.”

Moelven has noticed a demand improvement from the UK but said southern Europe still suffered from a construction market slump, although demand was no longer dropping.

A stronger euro has also benefited Moelven’s export timber sales. “We expect to see continued improvement in international market prices for sawn timber in the first quarter,” it said.

“Demand is increasing slowly and producer stocks of finished goods are still at low levels. At the same timer the Norwegian and Swedish krona exchange rates in relation to the most important export currencies – the euro, pound and US dollar – are at levels that provide a better basis for competition in the export markets than in a long time.”