The company's operating income for the first quarter increased by NOK 212 million when compared to the same period the previous year, ending at NOK 2165 million.
Higher activity levels
However, during a quarter which normally suffers due to the low season there were generally higher activity levels in Moelven's markets accompanied by satisfactory operating conditions which served to create positive results.
CEO Hans Rindal is delighted that things are going the right way for Moelven, but he would have preferred to have seen greater profits.
"It is great to see that our increase in turnover is continuing and that we are once again earning money. This is a positive result, which I am happy to see. However, our profits should be greater, even though we are talking about a quarter during the low season," says Mr. Rindal.
Mr. Rindal explains that the company's Building Systems project division contributes to most of these profits.
"Building Systems contributes to most of these profits and it has also made clear progress since last year. The division's order reserves are also satisfactory and it looks like it will be having a good year. Moelven's sawmills are still operating with low margins, but this has been slightly compensated for by improved internal operations," says Mr. Rindal.
Sales of building products via trading have been normal for the season and CEO Hans Rindal believes that the summer season will be good.
No imminent increases in demand for industrial wood are expected in Europe. However, positive signs from other areas such as the Middle East, North Africa and the USA are indicating that an improvement in the international market balance for industrial wood can be expected.
Operations at companies in the Wood Division in Norway and Sweden can be expected to remain at acceptable levels, particularly in the ROT (rehabilitation, renovation and additions) segment. The Building Systems Division's order reserves will help to secure normal operations during the second quarter.
The Board anticipates that the Group's overall profits for 2012 will be better than they were for 2011.
Important events occurring during the first quarter include the appointment of former Managing Director Ingmar Karlsen at Moelven Østerdalsbruket AS as the Acting Divisional Manager of Moelven Timber after Johan Padel handed in his notice at the end of March. Mr. Padel will be taking over as the new CEO of Moelven's competitor in Sweden, Setra Group AB.
Moelven also launched new websites in March.
For further information please contact:
CEO Hans Rindal, +47 90696910
Financial Director Morten Severed, +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 Consultant Tom Erik Holmlund, +47 916 68 668