Sweden's Setra narrows Q1 operating loss to 27M Swedish Kronor from 48M Kronor a year earlier; CEO cites signs of market improvement, says raw material prices have stabilized at 'slightly lower level'

Wendy Lisney

SOLNA, Sweden , April 27, 2012 (press release) – Wood products company Setra reports net sales of SEK 1,065 million (1,102) for the first quarter of 2012. Operating result for the period January-March amounted to SEK -27 million (-48). The quarter ended on a positive note.

“Setra reports an operating loss of SEK 27 million for the first quarter, which is better than in the previous year and also exceeded our expectations. It is particularly gratifying that the quarter ended on a positive note and that we showed a clear profit in March,” says Börje Bengtsson, President and CEO of Setra.

“Nothing dramatic has happened but we note a slight improvement in all markets. Volumes are increasing, market prices are slowing rising and at the same time raw material prices have stabilised at a slightly lower level,” says Bengtsson.

“The winter months are traditionally a weak period for the wood products industry,” says Bengtsson. “Now we have spring and summer when activities in the construction market usually increase. Our order situation ahead of the high season is favourable and we view continued market development with cautious optimism.

KEY FIGURES (SEKm)  January-March 2012

• Johan Padel, previously Managing Director of Moelven Timber, has been appointed as the new President and CEO. He will take up his position on 1 August when he will succeed Börje Bengtsson who is retiring in the autumn.
• Changes in Setra’s Group Management: Mikael Eliasson, Business Development Director, has been appointed as new head of the Redwood business area.
• Setra’s subsidiary Plusshus has decided to discontinue its box unit factory in Arvidsjaur. A total of 20 employees are affected.
• Hans Liljeström was appointed as new manager for the Skinnskatteberg sawmill.

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