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Moelven Timber: Earnings increase has intensified

28.10.2018 − 

The sawmill division "Timber" within Moelven Industrier tripled its EBITDA in the third quarter to nkr90m compared to the same quarter of the previous year. This represents a further increase in earnings compared with the increases in the first (+ 45 %) and second quarters (+ 56 %). According to the quarterly report published on 26 October, the division achieved an operating result of nkr67m, compared with a loss of nkr13m in the previous year. Sales increased by 4% to nkr693m. Against the background of satisfactory demand and low stocks of finished goods, the division was able to raise sawn timber prices compared with the previous year. The increase in the value of the Norwegian and Swedish krona against the euro and pound sterling hardly impaired the division's competitiveness on export markets.

The Wood division, which comprises the Group's industrial planing plants, increased EBITDA and operating profit by one-fifth each to nkr76m and nkr43m, respectively. The division, which increased its sales by 3% year-on-year to almost nkr1bn, benefited from higher prices for planed goods. However, sales volumes were lower than in the previous year as construction activity in various markets was affected by the hot weather, particularly in September.

EBITDA and operating earnings of the Building Systems division remained stable year-on-year at nkr37m and nkr23m, respectively. At nkr797m, sales were also at the previous year's level. The earnings trend was weaker than in the Timber and Wood divisions, on the one hand due to restrained demand and prices in the Swedish sales market, which were in part under pressure. In addition, production capacities could not be deployed due to a shortage of raw materials at various locations.

Group sales increased by 2 % to nkr2.494bn. At nkr204m, EBITDA exceeded the previous year's figure by 62 %. Operating profit (nkr130m), profit before tax (nkr135m) and profit for the period (nkr101m) each tripled.

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