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2016-07-12

Setra reports strong second quarter

Wood products company Setra reports an operating profit of SEK 76 million (88) for the first half of 2016. Net sales totalled SEK 2,188 million (2,270). Operating profit for the second quarter amounted to SEK 67 million (64) and net sales reached SEK 1,160 million (1,229).

“The market for wood products continued to develop in a positive direction during the second quarter. We can see a significantly better balance in the market, particularly for whitewood products. We report an operating profit for the second quarter of SEK 67 million which is a strong result in the current market situation,” says Hannele Arvonen, President and CEO of Setra.

“We do not expect a marked strengthening of the market in the months ahead. The effects of the UK’s decision to leave the EU are difficult to assess. The UK is one of our largest export markets and in the short term this creates unease and uncertainty,” says Arvonen.

Setra’s subsidiary within industrial-scale construction of wooden buildings, Setra Plusshus, was sold and these operations were transferred to Derome on 1 June 2016. Setra has concluded that Plusshus will develop better with an owner which has wooden building construction as its core business and that Setra’s role is to be a strategic partner to companies engaged in wooden building construction.

In autumn 2015 Setra decided to phase out the planing operations in Valbo. In June 2016 an agreement was signed with the Profura Group to take over the operations on 1 July 2016. The purchaser plans to continue with these operations and has offered employment to all employees.

Cash flow from operating activities in the first half of 2016 amounted to SEK 3 million (96). The Group’s financial position is strong. The net debt/equity ratio at the end of the period was 18% (26).

Key figures Apr-Jun (3 mths) Jan-Jun (6 mths)
2016 2015 2016 2015
Net sales, SEKm 1,160 1,229 2,188 2,270
Operating profit, SEKm 67 64 76 88
Profit after tax, SEKm 49 46 53 60
Operating margin, % 5.8 5.2 3.5 3.9
Return on operating capital, %, RTM 2.3 7.6
Cash flow, SEKm 45 52 3 96

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.

Release

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