Pöyry Group's Forest segment reported net sales of Euro 137.7 million

Oct 26, 2009. /Lesprom Network/. Pöyry Group's Forest segment reported net sales of Euro 137.7 million for the 1 January - 30 September 2009. Operating profit was Euro -9.0 (41.3) million. The operating loss for the period under review included Euro 7.3 million non-recurring expenses relating to personnel reductions, Pöyry Group said in a press release received by Lesprom Network. The economic downturn has impaired forest industry companies' profitability and hampered the availability of investment financing globally. For this reason, projects have been postponed, preparations for new projects have been delayed and the number of consulting assignments has declined. Capacity was adapted to match reduced demand in several markets, including Finland, Brazil, North America, Russia and Sweden. The personnel reductions during the period under review equalled a capacity of about 1000 persons (34%) and were partly implemented with temporary lay-offs. The business group's order stock declined to Euro 54.4 million (86.3 at the end of 2008). The most important new projects were the permitting services contract with Paroc Oy Ab, Finland, for a greenfield mineral wool plant in Chudovo, Russia (Euro 1.5 million) and engineering services for Investlesprom's Segezha pulp mill in Russia (Euro 6 million). The business group signed a long-term service agreement with Larox Corporation, Finland, for the supply of engineering and project services.