Wood products company Setra has reported an operating profit of SEK 56 million ($6.4 million) for the first nine months of 2020. Net sales totalled SEK 3,043 million ($349 million). There was an operating loss for the 3Q 2020 of SEK -3 million, with net sales of SEK 840 million ($96.5 million).
For the first three quarters of the year, Setra has returned positive operating profits of SEK 56 million ($6.4 million), which is down on the same period in 2019, largely on account of significantly lower sales prices. Sawmill production has been maintained without furloughing any employees. However low production volumes in July have had a negative impact on profits. The market situation has markedly improved in the third quarter of the year. The European market has recovered strongly and exports from Europe to the USA have risen steeply. Combined with lower production volumes in Canada, this has led to a general shortage of goods in the global market.
“The current situation of strong demand and lack of supply gives Setra an opportunity to fully ramp up production over the autumn. The global COVID-19 situation makes it difficult to judge how the market is going to develop in early 2021 but, based on the situation right now, the prospects look much better than they did earlier this year,” says Katarina Levin, Setra’s CEO.
The end of September marked Setra’s first delivery of cross-laminated timber for Bologna 1, the first of four apartment blocks that make up the Cederhusen development in central Stockholm. Cederhusen is being built by Folkhem as Sweden’s largest mass-timber built residential neighbourhood. CLT deliveries for Bologna 1 are planned to continue for the rest of the year and into January 2021.
Cash flow from operating activities for the period January–September amounted to SEK 392 million ($45 million). This increase is due primarily to a reduction in working capital. Net financial debt amounted to SEK 230 million ($26.4 million) at the end of the period, which corresponds to a net debt/equity ratio of 16%.
