2017-01-24

Increased earnings for Setra

Wood products company Setra reports an operating profit of SEK 153 million (47) for the full year 2016. This profit includes non-recurring items in an amount of SEK 38 million (-19). Net sales totalled SEK 4,043 million (4,218).

“The market for wood products has developed in a positive direction during the year. As a result we have been able to increase production which, combined with a favourable currency trend, has contributed towards our increased earnings. We see continued good demand for wood products and an improved stock situation compared with the same time last year. This means that we are positive about the development of the wood products market during 2017,” says Hannele Arvonen, President and CEO of Setra.

 

In December, an agreement was signed with Bergs Timber for the sale of operations at Setra’s sawmill in Vimmerby. This transaction was completed in January 2017.

 

During the year, Setra’s subsidiary within industrial-scale construction of wooden buildings, Setra Plusshus, and the planing operations in Valbo were sold. The result from these sales together with insurance compensation following a fire are reported as non-recurring items in an amount of SEK 38 million. In the previous year, costs for the discontinuation of planing operations in Valbo were reported in an amount of SEK 19 million.

Cash flow from operating activities for 2016 amounted to SEK 185 million (269). The Group’s financial position is strong. The Group’s net financial debt amounted to SEK 115 million at year-end which corresponds to a net debt/equity ratio of 9% (17).

The Board proposes a dividend of SEK 1.94 per share for 2016, corresponding to SEK 100 million.

Key figures Oct-Dec (3 mths)   Jan-Dec (full year)  
  2016 2015   2016 2015
Net sales, SEKm 1,000 986   4,043 4,218
Operating profit/loss excluding non-recurring items, SEKm 28 -31   115 66
Operating profit/loss, SEKm 67 -31   153 47
Profit/loss after tax, SEKm 47 -28   103 20
Operating margin, excl. non-recurring items, % 2.8 neg   2.8 1.6
Return on operating capital, %, RTM       10.4 3.0
Cash flow, SEKm -10 -5   185 269

Increased earnings for Setra