Tornator’s 1H 2019 net sales decreased to Euro 38.9 million, in which the share of timber deliveries was Euro 37.1 million. Timber deliveries totalled 1.2 million cubic metres, as the company said in the press release received by Lesprom Network.
The reported IFRS operating profit was Euro 31.1 million. Operative operating profit decreased by 38% to Euro 23.8 million.
Comparable net profit without fair value changes was Euro +10.7 million and Euro -20.8 million with fair value changes. The differences were mainly due to changes in the fair values of both forests, Euro +7.3 million, and financial instruments Euro -46.8 million.
CEO Henrik Nieminen said: “The first half of 2019 was challenging for Tornator. In our main business area, timber deliveries, we remained clearly behind our target of steady growth. Caution is emerging in the forest industry due to global economic uncertainty, affecting Tornator's ability to forecast timber delivery trends for the second half of 2019. Due to advance payments for timber sales, the company is generating its normal, strong cash flow, which means that its current and forecast ability to honour loan obligations, for example, is entirely normal. In terms of the big picture, demand and prices remain at a good level in all operating countries, with no collapse following last year's strong growth."
Tornator is a leading company specialised in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania.