Moelven earned 56 million
(Thomson Reuters ONE) -
In the second quarter, Moelven earned NOK 56 million from operations. That is
NOK 85 million less than in the same period last year. After financial costs,
profit for the quarter was NOK 28 million.
Operating revenues for the group in the second quarter were NOK 2,170 million
(1,937 million). In the first half, operating revenues were NOK 4,123 million
(3,414 million) and operating profit NOK 29 million (164 million).
Little price difference between raw materials and finished goods
The reason for the drop in operating profit from last year was largely the
relatively high raw material prices for the timber consuming units compared with
the price level in the finished goods markets.
"Even though the prices of raw materials came down during the first half, the
combination of these factors led to a weakening in operating profits for both
the Timber and Wood divisions. Prices of industrial timber passed their peak in
the third quarter of 2010; during the second quarter of 2011 they have been
considerably lower than at the same time last year. The costs of raw materials
have not gone down correspondingly," says Hans Rindal, CEO of Moelven Industrier
ASA.
Tough conditions
Rindal explains that this has meant difficult conditions for the Timber division
in particular.
"The market for finished goods is still a little unstable. However, periods of
low gross margins, because the raw material and finished goods markets are
moving towards each other, are normal for this division. In the second quarter,
we have after all moved back into a position where all three divisions have
positive operating results and the group as a whole is earning money again, even
though I would like to have seen more," says Rindal.
Increased activity
All three divisions have increased sales, compared with the year before. For the
Wood building product division, much of the cause is acquisitions. For the
Building System division, it is a clear sign of improved market conditions,
particularly in the professional building market in Sweden and Norway.
Not satisfied
"In total, this gives us a picture of increased activity but reduced earnings.
That is a picture we are not entirely satisfied with. But we expect to see a
better balance between the prices of finished goods and raw materials in the
second half than we had in the first. We also believe there will be good
activity during the summer in the domestic market for timber based building
products, but with a normal seasonal reduction towards the end of the year.
Orders in hand in the Building Systems division are at a good, normal level,
which will ensure us good activity through the second half of the year," says
Rindal.
Improving profits
Moelven expects that the group will see profits improve in the second half of
the year, but that the annual profits will be at a lower level than last year.
Further information:
CEO Hans Rindal, +47 90 69 69 10
CFO Morten Sveiverud, +47 90 98 06 67
Communications Advisor Tom Erik Holmlund, +47 91 66 86 68
www.moelven.com
2nd quarter 2011:
http://hugin.info/91/R/1530132/465450.pdf
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Source: Moelven Industrier via Thomson Reuters ONE
[HUG#1530132]
Unternehmensinformation / Kurzprofil:
Datum: 12.07.2011 - 07:31 Uhr
Sprache: Deutsch
News-ID 56308
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