Nov 06, 2014. /Lesprom Network/. Swedish Rörvik Timber improved its Q3
operating profit by SEK 13 million ($1.76 million) to zero result, sales
increased by 35.4% to SEK 394 million ($53.3 million), company
reported. In Q1-Q3 2014 sales was SEK 1,269 million ($171.7 million)
comparing to SEK 944 million ($127.7 million) in Q1-Q3 2013.
During
the third quarter company faced softer wood products market with lower
prices in local currency, however, it has been compensating by a
weakening of the Swedish krona. According
to company, industry's export price index (in Swedish kronor) for sawn
timber in 2014 increased by 7% for pine and 3% for spruce. During the
third quarter, a smaller reduction in prices recorded. Most of Rörvik's sales of sawn timber goes to Sweden, Northern Europe and North Africa. The
construction market in Europe has stabilized and including England and
Germany have had steady increases in volumes during the year. The North
African market has improved during the year, this market accounts for
approximately 20-25% of the Swedish timber exports, mainly pine
products. Egypt is the largest market in the region. US, which is the single largest timber market in the world, continues to improve.The
sawmill industry in southern Sweden needs structural changes, noted
Rörvik in financial report. Southern Sweden needs fewer and better
invested plants to maintain a good long-term competitiveness. The wood prices for many sawmills are at a significantly higher level than in the rest of Sweden.
Rörvik
Timber operates seven sawmills with a total production capacity of
about 950,000 m3. During the quarter, company produced 133,000 m3 of
lumber, with a capacity utilization of over 75%. The sawmill in Boxholm
switched to 2 shift's production. The sawmill in Rörvik will go to 2
shifts from year end.
