In the first quarter of 2016 the Metsä Wood timber products division within Finnish Metsä Group was confronted by a 31.6% decline in the operating profit to €5.4m. The deterioration in results was due to decreased lumber prices. The turnover of the business division, at €208.4m, remained virtually stable compared to the previous year. Lumber deliveries to Arabic countries as well as, in particular, to Asia increased markedly in the period covered by the report. Deliveries of Kerto-LVL were expanded, especially to North America and Australia. In Europe, sales possibilities for birch and softwood plywood deteriorated due to increased imports from eastern Europe.
The wood supply forestry division, due to fallen industrial timber prices in Baltic countries as well as in Sweden, was confronted by a 10.3% decline in operating profit to €7.8m. The division generated €401.2m, which corresponds to a 2.6% decline vis à vis the comparative period of the preceding year. Deliveries of roundwood, at 8.4m m³, were at a similar level to the previous year.
At group level, turnover decreased by 7.9% to €1.156bn. The EBITDA and operating profit declined by 7.6% to €173m and 9.3% to €106.8m respectively. Pre-tax and net profit decreased more significantly by 17.2% to €87.8m and 22.9% to €68.3m respectively.