“Demand for wood products has been stable during the first nine months of the year but increased production has led to oversupply and a price fall in local currencies in our main markets. We assess the market situation as highly uncertain going forward. Increased problems over access to foreign currency in Egypt and questions about economic development in China contribute to this uncertainty,” says Hannele Arvonen, President and CEO of Setra.
“We continue to focus on our internal efficiency improvement programmes in order to reduce costs and strengthen competiveness. We have a strong cash flow due to positive earnings and a good balance between delivery and production volumes,” says Arvonen.
During the year it was decided to make technology investments in the sawmills in Färila, Kastet, Malå and Rolfs which are intended to improve efficiency and flexibility and meet new customer demands. In order to strengthen long-term competitiveness, work on further development of the processing business has started. At the processing unit in Skutskär investment in strength grading and cutting to exact lengths is taking place during the autumn with the aim of strengthening the total offering to the building materials trade and industry. In order to optimise capacity utilisation at existing processing units, Setra has decided to close the planing mill in Valbo during 2016 and relocate these operations to the Group’s other units. Processing operations at the integrated sawmill Rolfs will be specialised and adapted to meet market needs.
Cash flow from operating activities in the period January-September amounted to SEK 274 million (179) which, combined with positive earnings, means that Setra’s financial position has strengthened. The net debt/equity ratio at the end of the period was 14% (19).
| Key figures | Jul-Sep (3 mths) | Jan-Sep (9 mths) | ||||
| 2015 | 2014 | 2015 | 2014 | |||
| Net sales, SEKm | 962 | 904 | 3,232 | 3,162 | ||
| Operating profit excl. non-recurring costs, SEKm | 11 | 27 | 99 | 192 | ||
| Operating profit/loss, SEKm | -10 | 27 | 78 | 192 | ||
| Profit/loss after tax, SEKm | -12 | 15 | 48 | 131 | ||
| Operating margin excl. non-recurring costs, % | 1.1 | 3.0 | 3.1 | 6.1 | ||
| Return on operating capital, %, RTM | 5.4 | 14.8 | ||||
| Cash flow, SEKm | 178 | 172 | 274 | 179 | ||
For further information, please contact:
Hannele Arvonen, President and CEO, telephone +46 8 705 03 10, mobile +46 706 18 19 17
Anders Marklund, CFO, telephone +46 8 705 03 03, mobile +46 702 84 47 96
Setra does not publish a complete interim report.
