Swedish wood products company Setra has reported an operating profit of SEK 95 (287) million for the period January–September 2019. Net sales totalled SEK 3,262 (3,325) million. There was an operating loss for the third quarter of SEK -22 (54) million, with net sales of SEK 879 (966) million.
“We’re reporting an operating loss of SEK -22 million, which is SEK 76 million lower than last year. The poorer results are mainly attributable to lower sales prices in combination with higher wood prices and lower production volumes,” says Anders Nordmark, acting CEO of Setra.
According to Setra, since the end of 2018, market conditions have become increasingly challenging. A good supply of timber – spruce in particular – in both Scandinavia and Central Europe, combined with a somewhat weaker growth rate is putting pressure on prices in the wood products market across the globe. There is still a high degree of uncertainty regarding the market trend in the next quarter, Setra says.
Setra’s strategic investments are running according to schedule. Construction of our cross-laminated timber factory is in progress in Långshyttan with work set to be completed in the first half of 2020. The new trimming and planing line in Hasselfors will be fully operational in the second half of 2020.
Cash flow from operating activities for the period January–September amounted to SEK 125 (318) million. The Group’s financial position continues to be strong. The Group’s net financial debt amounted to SEK 268 (-120) million at the end of the period, which corresponds to a net debt/equity ratio of 18% (-8).
| Key figures | Jul–Sep (3 months) | Jan–Sep (9 months) | |||
| 2019 | 2018 | 2019 | 2018 | ||
| Net sales, SEKm | 879 | 966 | 3,262 | 3,325 | |
| Operating profit, excl. non-recurring items, SEKm | -22 | 54 | 113 | 287 | |
| Operating profit/loss SEKm | -22 | 54 | 95 | 287 | |
| Profit/loss after tax, SEKm | -18 | 50 | 72 | 231 | |
| Operating margin, excl. non-recurring items, % | -2.5 | 5.6 | 3.5 | 8.6 | |
| Return on operating capital, %, 12 months | 7.4 | 24.2 |
