Moelven posts losses of 27 million
(Thomson Reuters ONE) -
A combination of a normal low season and discrepancy between the cost of raw
materials and sales prices for key products meant that Moelven lost NOK 27
million in Q1.
This meant that the result is NOK 49 million less than for the same period in
2010. Operating revenues for Q1 increased compared with last year, ending at NOK
1,953 million (1,477).
Moelven Industrier ASA CEO Hans Rindal explained that demand for the group's
products and services has traditionally dipped during the low season.
"The start of the year was more difficult than we expected, and the result is
unsatisfactory. But there are signs of improvement thanks to the season and the
economy recovering. We therefore expect to return with a positive result at the
end of Q2," stated Rindal.
High production despite low season
Production and deliveries have remained higher than for the same period last
year, despite the low season. The CEO explains this aspect as follows:
"The increase in operating revenues is mainly due to increased activities on the
Swedish market for building modules, and the acquisition of Sør-Tre Bruk AS,
Granvin Bruk AS and Eco Timber AS, completed at the end of Q2 last year. Even
though the level of activity has increased, the result for the sawmills is
affected by low prices for industrial wood internationally. The Wood building
products division normally produces for stock during Q1 in anticipation of
increased activity during the summer, which has a negative effect on the result.
Activities increased in the Building Systems Division, which supplies the
Scandinavian project market. But start-up costs come early in projects, which
are sound and necessary preparations for increased deliveries later in the year,
and the result trend through the quarter shows that we are on the right track,"
concluded Rindal.
Good prospects
The trend for Q1 2011 was in line with the board's expectations, but the result
was unsatisfactory for the group overall. Reduced raw material costs and rising
prices will increase margins in the Timber and Wood divisions in Q2. An
improvement in results is expected for the Building Systems Division as a result
of increased orders.
The board expects a positive accumulated result for the first six months, and an
overall result for the year a little less than for last year.
Further details:
CEO Hans Rindal, mobile +47 90 69 69 10
CFO Morten Sveiverud, mobile +47 90 98 06 67
CCO and HR Director, Kristin Vitsø Bjørnstad, mobile +47 90 71 37 01
Communications Consultant Tom Erik Holmlund, mobile +47 91 66 86 68
www.Moelven.com
Quarterly Report 1/2011:
http://hugin.info/91/R/1506588/441392.pdf
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Source: Moelven Industrier via Thomson Reuters ONE
[HUG#1506588]
Unternehmensinformation / Kurzprofil:
Datum: 15.04.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 53573
Anzahl Zeichen: 3542
contact information:
Town:
Moelv
Kategorie:
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