The operating income was NOK 2,182 million ($360 million), which is similar to the income in the 2Q 2012 (NOK 2,186 million). The industrial goods division Timber has seen an increase in its operating income, activities in the Wood building products division are stable and the Building Systems division has seen a decline.
CEO Hans Rindal is happy that the Timber division is positing positive results again: "Better prices and a stronger Euro are two significant contributors. At the same time, there have been improvements in operations in several areas. The development appears to continue in the third quarter. This provides a good basis for our deliveries of wood-based building products to the Scandinavian market," says Rindal.
The CEO says that the building products market is more stable because a large share of the products are used for renovations, conversions and extensions.
"We continue to improve our offerings within building products by combining a broad spectrum of good products with good distribution solutions," says Rindal. He thinks that this in sum gives the Wood building product division a good market position, including when there is less demand.
Moelven is noticing a lower level of new construction in Sweden, especially in two areas: less need for new rental modules and fewer deliveries of glulam for private homes.
"Our module manufacturing companies have done a good job of establishing themselves in the market for flats, and this means that we are maintaining a higher level of activity than the last time when there was low demand in the rental market. We are noticing the decline in the market, but are still making a profit, albeit a small one. We have had to adapt costs within glulam. Our producers of interiors are supplying a greater share to the renovation, conversion and extension market, and have satisfactory profits," says Rindal.
In the market for timber and fibre products, the closure of the paper and cellulose industry in some of Moelven's local areas has necessitated improvements in access to sidings for the railway and to increase the storage and loading capacity for industrial chips and pulpwood.
"This work is well underway and secures raw materials in the second half of the year for all units using timber, as well as deliveries of chips from these units. The effects this will have on the total timber market in the long term remains to be seen, but initially we have managed to handle this," says Rindal.
Moelven is a Norwegian-based sawmiller and glulam producer.