Swedish sawmiller Rorvik Timber has posted third-quarter pre-tax losses of SKr28m (2010: SKr-27m) and said the timber market was now going through the worst crisis since the 1970s.
Pre-tax losses for the first nine months now amount to SKr119m.
However, Rörvik’s production capacity utilisation has risen. Production for the nine months was 375,000m³ (298,000m³) and is expected to reach 550,000-600,000m³ by the end of 2011.
The company will increase production capacity of its pressure-treated products by 50% by next spring, while finger-jointed products now make up 15% of output.
“The industry’s export price index for sawn timber during the first nine months continued to fall by a further 7% for pine and 6% for spruce,” it said.
Rörvik said uncertainty affected the important North African market, which accounts for about 20-25% of Swedish timber exports, mainly pine products.
On the positive side, the sawmiller said wood raw material costs were going down, a development it said which “must continue” for the sawmilling sector to record a reasonable profit.
