“We’re reporting an operating profit, adjusted for non-recurring items, of SEK 179 million for 2017, which is an improvement of SEK 64 million on the previous year. Due to good market conditions, we have been able to increase both selling prices and sales and production volumes for comparable units. Going forward we see continued good demand from our customers and a positive development for the wood products market, both in Sweden and internationally,” says Hannele Arvonen, President and CEO of Setra.
Disruptions in the freight market during the year had a negative impact on earnings. The situation stabilised during the second half of the year. The import restrictions imposed last spring by Algeria, an important export market for Setra, have been partially lifted and it has been possible to resume deliveries. These factors, combined with a continued strong market situation, have contributed to the improved performance for the fourth quarter. Operating profit, adjusted for non-recurring items, for the fourth quarter totalled SEK 72 million (28).
Setra’s Board has decided to invest in a new trim saw with integrated planing machine at Hasselfors sawmill. Decisions have also been taken to invest in a component factory in Långshyttan to produce components such as doors and windows. The investments are in line with Setra’s clear strategy to increase the proportion of finished products in response to the growing demand in the global construction market and to be able to meet increased customer demand for components.
Setra has set in motion the sale of its operation in Rolfs, Kalix.
Cash flow from operating activities for 2017 amounted to SEK 288 million (185). The Group’s financial position is strong. The Group’s financial net debt amounted to SEK -28 million (115) at the end of the period, which corresponds to a net debt/equity ratio of -2% (9).
The Board of Directors proposes a dividend of SEK 1.12 per share for 2017, equivalent to SEK 58 million.
| Key figures* | Oct.-Dec. (3 mos) | Jan.-Dec. (12 mos) | |||||
| 2017 | 2016 | 2017 | 2016 | ||||
| Net sales, SEKm | 1,112 | 1,000 | 4,139 | 4,043 | |||
| Operating profit, excl. non-recurring items, SEKm | 72 | 28 | 179 | 115 | |||
| Operating profit, SEKm | 52 | 67 | 159 | 153 | |||
| Profit after tax, SEKm | 41 | 47 | 116 | 103 | |||
| Operating margin, excl. non-recurring items, % | 6.5 | 2.8 | 4.3 | 2.8 | |||
| Return on operating capital, %, RTM | 11.4 | 10.4 | |||||
| Cash flow, SEKm | 66 | 10 | 288 | 185 | |||
Setra does not publish a complete year-end report.
* Figures for the previous year include the operations in Vimmerby, which was sold in January 2017, as well as the subsidiary Setra Plusshus and the planing operations in Valbo, both of which were sold in the second quarter of 2016.
