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Setra Group: lower sawnwood prices impact result

02.08.2019 − 

In the second quarter Setra Group achieved operating profit of SEK35m, corresponding to a 75.2% decline vis à vis the comparative quarter of the preceding year. The result after tax decreased at a similar rate to SEK26m.

According to company sources, circumstances on softwood lumber markets have deteriorated overall since the fourth quarter of 2018. Decisive for the markets in this connection was the high availability of roundwood as well as declining roundwood prices in Scandinavia and especially in central Europe, particularly in the case of spruce. Weaker growth rates on softwood lumber markets also led to a decline in sales prices in Europe. The price declines were only partially offset by Sweden’s currency advantages in the first six months. Following a 10% turnover decline in the first quarter, a slight increase of 2.1% to SEK1.255bn was achieved again in the second quarter. Cash flow from the company’s operative activities increased to SEK72m.

For the first half of the year, at SEK2.383bn, Setra records stable turnover development, whereas operating profit as well as the result after tax were significantly lower than in the preceding year at SEK117m and SEK90m respectively. The gross margin declined by four percentage points to 5.7%. Cash flow amounted to SEK66m. The group still describes the financial situation as robust. Net indebtedness at the end of June was some SEK119m, representing a proportion of 8%.

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