“The lower earnings compared with the 1Q in the previous year was mainly explained by lower selling prices. The market for wood products improved somewhat during the 1Q. We see a considerably better balance for whitewood products and a slight improvement for redwood, although there are still large stocks of redwood products at producers. Price increases could be implemented in local currency in a number of markets,” says Hannele Arvonen, President and CEO of Setra.
“Due to the strained market situation last autumn we decided to implement production cutbacks during the 4Q. As an effect of these we have good control of our stocks and our cash flow. Now when the market situation looks a little better, we are back to our normal production rate,” says Arvonen.
Cash flow from operating activities for the 1Q amounted to SEK -42 million ($5.1 million). Setra’s financial position is strong. The net debt/equity ratio at the end of the period was 21%.
Setra is one of Sweden’s largest wood products companies. The company processes raw material from responsibly managed forests and offer climate-friendly products and solutions for building and living in a global market.
