“The market for wood products continued to be characterised by uncertainty in the fourth quarter. A continued imbalance between supply and demand for wood products led to price reductions in our main markets. As a result of the current market situation, particularly in North Africa, we decided to introduce production cutbacks in the fourth quarter. These had a negative impact on our earnings but meant that we continue to have good control over our stocks and our cash flow. We assess the market situation going forward as highly uncertain,” says Hannele Arvonen, President and CEO of Setra.
“We continue to focus on our internal efficiency improvement programmes in order strengthen our competitiveness. As part of these efforts we made technology investments in the sawmills in Färila, Malå and Rolfs during the year. We have a strong cash flow due to positive earnings and a good balance between delivery and production volumes,” says Arvonen.
During the year a decision was made on investments in a new sawmill infeed system and drying capacity at Kastet sawmill. 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 will take place in the spring in order to strengthen 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. The processing concept at the integrated sawmill Rolfs will be specialised.
Cash flow from operating activities in 2015 amounted to SEK 274 million (112) 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 17% (27).
The Board proposes a dividend of SEK 0.20 per share for 2015, corresponding to SEK 10 million.
|Key figures||Oct-Dec (3 mths)||Jan-Dec (full year)|
|Net sales, SEKm||986||1,032||4,218||4,194|
|Operating profit/loss excl. non-recurring costs, SEKm||-31||9||66||201|
|Operating profit/loss, SEKm||-31||9||47||201|
|Profit/loss after tax, SEKm||-28||2||20||133|
|Operating margin excl. non-recurring costs, %||neg||0.9||1.6||4.8|
|Return on operating capital %, RTM||3.0||12.4|
|Cash flow, SEKm||-4||-67||274||112|
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 and complete year-end report.