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2019-04-16

Low volumes affect Setra’s profit for the first quarter

Wood products company Setra has reported an operating profit of SEK 83 million (92) for the first quarter of 2019. Net sales totalled SEK 1,128 million (1,130).  

“We’re reporting an operating profit of SEK 83 million for the first quarter of 2019, which is SEK 9 million lower than the previous year. The fall in profit is mainly due to lower delivery and production volumes,” says Hannele Arvonen, President and CEO of Setra.

Market conditions have gradually become more challenging since the last quarter of 2018. The decline in price has to a certain extent been compensated by foreign exchange developments during the first quarter. Good access to timber – spruce in particular – in both Scandinavia and Central Europe is putting pressure on prices on the European market.

Setra has had a high level of export to the Middle East and North Africa, primarily Egypt. Deliveries to China have also been lower compared with the same period in 2018, but are expected to increase. The strategic projects in Långshyttan and Hasselfors are progressing as planned.

At the end of March 2019, negotiations were concluded between Setra and all trade unions at Setra Rolfs. The outcome was as previously announced; that Rolfs sawmill is to be closed down. Production will continue up until the holidays.

Cash flow from operating activities amounted to SEK, -6 (30), with the negative cash flow mainly attributable to stock building. The Group’s financial position remains strong, with net financial debt amounting to SEK -9 million (29) at the end of the period, which corresponds to a net debt/equity ratio of -1% (2).

The annual general meeting of Setra Group AB for the 2018 financial year is scheduled to take place on 10 May 2019.

Key figures* Jan–March (3 months)      
  2019 2018      
Net sales, SEKm 1,128 1,130      
Operating profit, SEKm 83 92      
Profit after tax, SEKm 64 70      
Operating margin, % 7.3 8.2      
Return on operating capital, %, 12 months 20.2 21.6      
Cash flow from operating activities, SEKm -6 30      
                 

Setra does not publish a complete year-end report.