SCA’s solid wood products production for 2014 totalled 2.23 million m3, up 2% on 2013. Its forest products division, which includes sawn timber, pulp and paper products, reported operating profits of SKr2.5bn, up 36% on a year ago.
Net sales were up 6% to SKr16.4bn. Solid wood products showed higher volumes and higher prices over the year. SCA’s group wide annual results show pre-tax profits of SKr10.8bn, up by 17% on a year ago.
Metsä Wood’s operating profits (excluding non-recurring items) grew to €37.2m in 2014, up from €15.4m the previous year. Sales totalled €896.9m (2013: €899.7m).
The increase resulted not only from a rise in sales prices, but also from implemented efficiency programmes and closures of unprofitable units. It said the market balance of sawn timber weakened after the beginning of the year, with production of Nordic sawn timber increasing by 7-10%, which led to over-supply of spruce sawn timber in particular.
Average delivery prices decreased during the second half of the year, with profitability weakening. The company’s sawmilling business implemented market-based production curtailments at the turn of the year.
Moelven saw its group total annual turnover grow to NOK8.2bn in 2014, up NOK819m compared to the previous year, while operating profits were NOK204m, some NOK248m above 2013.
Acting CEO Morten Kristiansen expressed delight at the improvement, which was seen in all three operating divisions. The building systems division saw a decline in its profits in relation to its budget.
Stora Enso’s Building and Living division, which includes sawn timber, recorded an annual 9.6% growth in earnings before interest, tax, depreciation and amortisation (EBITDA) to €126m, with sales of €1.77bn, down by 4.7%.
It said lower sales volumes were due to weak Japanese and Middle East/Africa markets and higher net raw material costs, partly offset by higher sales prices in local currencies. It described demand as “significantly weaker” in Q4, compared with Q3, with prices slightly lower. Full-year deliveries totalled 4.49 million m3, down 5.9% on 2013.
Stora Enso’s Murow sawmill investment is proceeding as planned and is expected to be finalised by the end of Q2.
Setra reported a 2014 operating profit of SKr201m (2013: €107m), with net sales of SKr4.19bn (2013: SKr4.06bn). Setra’s sales to markets in Asia, especially China, showed strong development in 2014, while the Middle East and North Africa were “stable”.
The sales trend in several European markets, including Germany, continued to decline.
“We entered a more uncertain market in the fourth quarter and we can see no clear signs that this instability will change significantly in the immediate future,” it said.
UPM’s biorefining division, which includes pulp and sawn timber, recorded sales of €1.93bn (2013: €1.98bn), with EBITDA of €358m (2013: €435m).
