Wood products company Setra has reported an operating profit of SEK 83 million ($9 million) for the 1Q 2019. Net sales totalled SEK 1,128 million, as the company said in the press release received by Lesprom Network.
“We’re reporting an operating profit of SEK 83 million ($9 million) for the 1Q 2019, which is SEK 9 million ($1 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 1Q. 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.
Setra is one of Sweden’s largest wood products companies.
