Moelven earns 141 million in second quarter
(Thomson Reuters ONE) -
Moelven earned NOK 141 million from operations in the year's second quarter,
which is NOK 117 million more than last year for the same period.
The main reasons for the improved results are better operating conditions, the
effect of cost-cutting measures and higher prices for finished goods in the
Timber and Wood divisions.
Higher operating revenues
Operating revenues for the Group in the second quarter totalled NOK NOK 1 937
million (1 772). For the first six months of the year, operating revenues
totalled NOK 3 414 million (3 228), while operating profit ended at NOK 164
million (minus 66).
President and CEO Hans Rindal of Moelven Industrier ASA says that the background
for the positive results are higher prices for sawn wood and increasing demand
for the Group's products and services in the second quarter as a result of the
normal seasonal upswing in business activity.
- The second quarter has been a good period for us, which is at it should be
because construction activity usually increases during the summer months. The
Building Systems division, which is normally the last division to experience the
cyclical increase in demand, also seems to have passed through the low point in
the cycle and orders reserves are once again rising. We are far from the top,
however, and I think it will take some time before we are back to that level. In
terms of capacity and costs, the Group is well adapted to the current market
situation, which is a good starting point for growth in activity, even though
the growth may be moderate, says Rindal.
Secure financing
The Group signed a long-awaited refinancing agreement in the second quarter and
has thereby secured financing for the coming five-year period.
- With the financing in order, we can now concentrate on developing the industry
even further. As a step in this process, the Moelven family has gained three new
members: Sør-Tre Bruk AS, Granvin Bruk AS and Eco Timber AS. All of these
companies will become business units in the building product division, Wood, and
enhance the division's geographical reach and range of products and services.
The objective is for the builders' merchant sector to experience Moelven as an
even better supplier, says Rindal.
Even with the refinancing process behind us and a solid profit in the second
quarter, the CEO is still focused on developing the business as it is today, not
based on additional acquisitions.
- We have reserve capacity in many areas that we intend to make use of as soon
as it is needed. In any event, the financial markets are still not stable and
politicians in many countries need to work hard to balance public budgets. These
factors will likely affect the construction industry for a long time to come and
is something we cannot ignore, says Rindal.
Bottom likely reached in 2010
Overall business activity in the construction market is expected to reach bottom
in 2010; however, there are major differences in development between various
regions and sectors.
The rehabilitation and additions market has been the most stable, and new-build
construction seems to be increasing faster than the construction of new
commercial and industrial buildings. Deliveries of building materials through
chains of builders' merchants are expected to vary as always according to
season, with continuing high activity in the third quarter and a downturn toward
the end of the year.
Order reserves in the Building Systems division are on the rise, with the best
market developments taking place for the modular building businesses.
Prices in the European market for sawn wood have increased the first six months
of the year and market conditions are expected to remain good in the third
quarter.
The Board of Moelven expects the annual result for 2010 to be significantly
higher than the previous year.
For more information:
President and CEO Hans Rindal, cell phone: +47 90 69 69 10
Director of Finances Morten Sveiverud, cell phone: +47 90 98 06 67
Assistant director of finance Rune F. Andersen, cell phone: 913 43 260
[HUG#1430779]
2nd quarter 2010: http://hugin.info/91/R/1430779/377431.pdf
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: Moelven Industrier via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 12.07.2010 - 07:32 Uhr
Sprache: Deutsch
News-ID 23741
Anzahl Zeichen: 0
contact information:
Town:
Moelv
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 269 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Moelven earns 141 million in second quarter"
steht unter der journalistisch-redaktionellen Verantwortung von
Moelven Industrier (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
