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Profit situation for Scandinavian sawmill operations remains weak

25.06.2012 − 

Following what had already been a mainly weak trend in 2011, lumber activities among Scandinavian concerns have shown virtually no recovery in the first quarter of 2012. Growth in turnover and results in classic lumber business from January to March still remained the exception. Companies continued to describe the profit situation at sawmills as unsatisfactory. The reasons for the weak business trend continue to be quoted as primarily an imbalance between supply and demand on most European sales markets and a low price level. Although raw-material costs had stabilised recently, they were still high in comparison to rather weak selling prices. Swedish companies and concerns with plants in Sweden are again reporting a competitive disadvantage in the first quarter of 2012 vis-à-vis other suppliers on account of the continuing strength of the Swedish crown.

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