“The market for wood products continued to be characterised by uncertainty in the fourth quarter. A continued imbalance between supply and demand for wood products led to price reductions in our main markets. As a result of the current market situation, particularly in North Africa, we decided to introduce production cutbacks in the 4Q. These had a negative impact on our earnings but meant that we continue to have good control over our stocks and our cash flow. We assess the market situation going forward as highly uncertain,” says Hannele Arvonen, President and CEO of Setra.
Cash flow from operating activities in 2015 amounted to SEK 274 million ($32.2 million) which, combined with positive earnings, means that Setra’s financial position has strengthened. The net debt/equity ratio at the end of the period was 17%.
Setra is one of Sweden’s largest wood products companies.
