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Setra Group: Net result down by SEK10 million

02.05.2016 − 

Lower selling prices on the softwood lumber markets coupled with little change in log procurement costs gave rise to a conspicuous decline in the earnings figures of Swedish Setra Group in the first quarter. Whereas sales revenue was held almost steady at the previous year’s level at a total of SEK1.028bn, the operating result and post-tax profit fell sharply to SEK9m and SEK4m respectively. The return on sales fell to 0.9% and the return on operating capital (ROOC) amounted to 2.1%. Although the downhill development of the preceding quarters was thus perpetuated at the beginning of this year, in contrast to the fourth quarter of 2015 when the company recorded an operating as well as a net loss, the group at least got back into the profit zone.

Hannele Arvonen, president and CEO of Setra, believes the state of the market in general, though the spruce lumber markets in particular, improved again slightly during the course of the first quarter. On some markets it was possible to slightly raise the prices in the respective national currency. In contrast to this, manufacturers’ high stocks of pine lumber are still causing problems.

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