Deliveries of sawn timber in the 2Q were 176,000 cubic metres, which was 28% more than the previous year. In the reference period in 2012 selling prices rose by 1% and raw material prices fell by 1%.
An efficiency-enhancement programme is in place at Vapo Timber to improve profitability. The principal elements of the programme are: more efficient control of timber procurement, a better output ratio, improved sales management and opening new distribution channels.
The reorganization implemented in June clarifies management and responsibilities in the sawmills, with the Pielinen sawmills (Nurmes and Kevätniemi sawmills) and the Hankasalmi becoming their own separate profit centres.
In the January-June period the turnover of Vapo Timber was Euro 68 million compared to Euro 59.9 million in 1H 2012 and the operating result was Euro -3.9 million. Compared to the same period in the previous year, raw material prices were 1% lower and selling prices on average 2% higher. Delivery volumes were 7% higher than in the first half of 2012.
CEO Tomi Yli-Kyyny on the result for the first half: “The turnover of Vapo Timber was around 13% higher than the reference period. Sawn timber selling prices rose by 1% and raw material prices dropped by 1%. The efficiency-enhancement actions taken have reduced Vapo Timber’s operating loss, but the business remains heavily loss-making. The operating result of Forest Fuels and Pellets was marginally positive.”
Vapo Timber is one of the biggest producers of sawn timber in Europe. The sawmills of Vapo Timber Oy are located in Hankasalmi, Lieksa and Nurmes.