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2017-10-24

Setra reports increased earnings and invests in the future

Wood products company Setra is reporting an operating profit of SEK 107 million (86) for the period January – September 2017. Net sales totalled SEK 3,027 million (3,043). Operating profit for the third quarter amounted to SEK 17 million (10) with net sales of SEK 945 million (855).  

“We’re reporting an operating profit for the first three quarters of SEK 107 million, which is an improvement of SEK 21 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 for much of the year had a negative impact on earnings. However, the situation improved in the third quarter. The import restrictions that Algeria imposed in the spring have since been partially lifted, so that deliveries will be able to begin again to some extent from October.

Setra’s Board has decided to invest in a new trim saw with integrated planing machine at Hasselfors sawmill. The new investment, which is expected to deliver major efficiency gains, forms part of Setra’s clear strategy to increase the proportion of finished products in response to the growing demand in the global construction market.

Setra has set in motion the sale of its operation in Rolfs, Kalix.

Cash flow from operating activities for the period January – September amounted to SEK 222 million (195). The Group’s financial position is strong even after a dividend of SEK 100 million was paid to shareholders. The Group’s financial net debt amounted to SEK 14 million (83) at the end of the period, which corresponds to a net debt/equity ratio of 1% (6).

Key figures Jul – Sep (3 mths)   Jan – Sep (9 mths)  
  2017 2016   2017 2016
Net sales, SEKm 945 855   3,027 3,043
Operating profit, SEKm 17 10   107 86
Profit after tax, SEKm 9 3   75 56
Operating margin, % 1.8 1.2   3.5 2.8
Return on operating capital, %, RTM       12.2 3.8
Cash flow, SEKm 126 192   222 195
               

Setra does not publish a complete quarterly report.
Figures for the previous year include the operations in Vimmerby which was sold in the beginning of 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.