Operating revenues in the third quarter were NOK 1,883 million, compared with NOK 1,808 million in the third quarter of last year.
The weak result is due to costs in connection with the commissioning of new production plant, project evaluation and a competitive situation in certain market segments that continues to be challenging. Measured against the same quarter last year, the improved results for the Timber division, Moelven Elektro AS and the building furnishing companies only partly compensate for weaker results in the Wood building products division, the laminated timber companies and the building module operation in Sweden. The quarter's result after interest and tax was minus NOK 26 million, against minus NOK 29 million in the same period last year.
During the course of the quarter, the group's activities have been reviewed and a number of measures have been identified and are being closely followed up, in order to improve results in ongoing operations and reduce the risk of losses in connection with individual projects. A project to liberate working capital has also been initiated.
"We also have a period with many investment projects behind us. This means that we can reduce investment levels considerably over the coming months and concentrate fully on effective operation. I expect the sum of these measures to give us better results," says CEO Hans Rindal.
Improvement for the sawmills
"The market balance for Timber's sawmills is improving. Demand has marginally improved in certain markets, while production and storage levels of industrial timber have reduced," says Rindal.
This, combined with changing currency conditions, has led to better earnings for the sawmills.
"At the same time, we can see that access to raw materials for our timber-consuming units and sales opportunities for chip products have been satisfactory, and the adaptations that were made after the closure of Södra Cell Tofte have worked as intended," says Rindal.
The Building Systems division has a satisfactory order book, with a better composition than at the same time last year. Continued improvement is anticipated in the international price situation for industrial timber in the fourth quarter. No great changes are expected in Scandinavia other than the normal seasonal changes in the market for building products.
Overall the Board expects that the group's operating result for the fourth quarter will be stronger than the corresponding period last year, while the year as a whole will be considerably weaker than 2012.
For further information please contact:
CEO Hans Rindal, +47 906 96 910
CFO Morten Sveiverud, +47 909 80 667
Ass. Financial Director Rune F. Andersen, +47 913 43 260
Communications and HR Director Kristin Bjørnstad, +47 907 13 701
Communications Officer Tom E. Holmlund, +47 916 68 668
For a local angle on the situation, contact one of our businesses directly:
Building products division Wood:
Head of division Bjarne Hønningstad, mobile +47 97591201
Wood Sweden: Managing Director Mikael Axelsson, mobile +46 (0) 101225004
Moelven Denmark: Managing Director Michael Helmershøj, mobile +45 40452336
Building Systems project division:
Moelven Byggmodul AB: Managing Director Johan Samuelsson, +46 10 122 5954
Moelven Byggmodul AS: Director Lars Brede Aandstad, +47 90992851
Moelven Töreboda AB: Managing Director Johan Åhlén, mobile +46 (0) 50648189
Moelven Limtre AS: Director Åge Holmestad, mobile +47 (0) 95864620
Moelven Eurowand AB: Manging Director Orvar Sandelin, mobile +46 (0) 101226003
Moelven Nordia AS: Director Trygve Toften, mobile +47 90874964
Moelven Elektro AS: General Manager Atle Bergo, mobile + 47 48283400
Timber industrial products division:
Head of division Ole Helge Aalstad, mobile +47 90014343
A list of our companies at the local level is available here: