“Basically we can see a better 2Q this year than in the same period last year, and we see the results of efficiency measures in several of our businesses. Further efficiency measures were initiated during the quarter and have led to an impairment loss in 2Q of NOK 48 million ($5.7 million) in operating profit, related to the decision on the sale or liquidation of the operations of Moelven Nössemark Trä AB. Apart from this one-off effect, a review of the project portfolio in the electrical business led to cost corrections of NOK 22 million ($6.3 million). For the Group overall, the accounts for 2015 have been charged with an accumulated amount of NOK 78 million ($9.3 million) in impairments and downgrading of the value of projects,” said Acting CEO Morten Kristiansen of Moelven Industrier ASA.
Prices in the international sawn timber market were generally lower than in the 2Q last year, but the Timber division still managed an acceptable operating profit before non-recurring items of NOK 26 million ($3.1 million). After impairments, Timber posted a loss for the quarter. In the Building Systems division, the improved performance was especially due to the modular buildings and interior solutions businesses in Sweden. The Wood division showed the greatest improvement in profits.
“However, the seasonal increase in activity and turnover was more normal in 2015 than in 2014, when the price increases announced for the construction business from 1 April 2014 led to a higher turnover at the end of the 1Q of last year,” added Morten Kristiansen.
Moelven is a Scandinavian industrial group that produces building materials and systems for the construction industry.
