“This is a strong finish for a year with poor earnings for Moelven. In terms of results, this is our best 4Q since 2009. Obviously, we are disappointed that the year as a whole finished with a negative result, but now we are seeing signs in many of our markets that things are picking up. At the same time we have improved efficiency internally in several areas,” Moelvens CEO Hans Rindal says.
“England is one example of this. In Southern Europe the situation is still difficult with a slump in the construction market, but demand is no longer dropping. All in all, there is significantly better balance between supply and demand than for a long time,” Rindal says. At the same time, good demand continues in markets beyond Europe.
“We expect to see continued improvement in international market prices for sawn timber in the first quarter. Demand is increasing slowly, and producer stocks of finished goods are still at low levels. At the same time, the NOK and SEK exchange rates in relation to the most important export currencies of EUR, GBP and USD are at levels that provide a better basis for competition in the export markets than in a long time,” Rindal added.
In the Scandinavian market, somewhat lower building activity is expected. However, the lion's share of the group's products are aimed at the renovation, rebuilding and extension markets, as well as the market for new commercial buildings, which are more stable than the residential housing market.
In sum, activity levels are expected to follow normal seasonal variations with increased activity as the first half of the year progresses.