The group and its owners can consequently be very happy with a boost in their profits of NOK 248 million compared to 2013.
Group activities increased by as much as 10.2% in 2014 and the group's total annual turnover amounted to NOK 8,828 million, i.e. an increase in income of NOK 819 million compared to the previous year. The group's operating profit and operating income for the final quarter were also up on the figures posted for the same period last year and respectively ended up at NOK 48 million (NOK 36 million for the final quarter of 2013) and NOK 2,151 million (NOK 2,097).
Acting CEO Morten Kristiansen is delighted with this improvement in the group's results.
"All in all this improvement is the result of achieving a better balance between the prices for raw materials and finished goods, much higher levels of activity in the markets in which we operate, better currency conditions and internal improvement measures," says Mr. Kristiansen.
Growth in activities
Mr. Kristiansen says that all three of Moelven's divisions experienced satisfactory growth in their activities in 2014.
"As regards the operating profits posted by our individual divisions, they all experienced considerable improvements compared to the previous year. This is extremely satisfactory. Unfortunately our Building Systems Division saw a decline in its profits in relation to its budget, but it reached the end of 2014 with very healthy order reserves. Furthermore, this division's companies in Norway and Sweden will be commencing and completing a number of major projects - including the world's tallest wooden house located in Bergen. We therefore believe that we will see considerable improvements in this division's profits during the forthcoming year," says Mr. Kristiansen.
Krone exchange rate
A weaker krone in Norway and Sweden has also had a beneficial impact on the group and Moelven's export-oriented units in particular have benefited from this.
"Both the NOK and SEK have become much weaker during 2014 when compared to most other currencies. When measured against the EUR, GBP and USD, which are the group's most important export currencies, the exchange rates for these have now reached levels which are clearly providing the group with better competitive power in our export markets," says Mr. Kristiansen.
He reminds us, however, that Moelven is still undergoing a process of reorganisation. During the autumn of 2014 the group's management presented a strategy to the Board of Moelven which identifies the direction and the most important areas of investment for the group over the next five years.
"Many of Moelven's companies are doing really well, while others have a long way to go before they reach their profit targets. The group's rate of return on employed capital improved to reach 6.8% (-1.5). Moelven's rate of return target during a trade cycle is 13% and a general framework and measures for this achieving this were drawn up in the strategy work which was undertaken during the autumn of 2014. We will be working relentlessly in order to improve our competitive power. It is therefore important for me to emphasise - irrespective of our improved profits - that our future work will involve at least the same amount of pressure. It is my impression that our messages are hitting home and that we are seeing obvious improvements in several of our companies." says Mr. Kristiansen.
For further information please contact:
Acting CEO Morten Kristiansen, mobile +4791118250
Communications and HR Director Kristin Bjørnstad, mobile +4790713701
Communications Manager Tom E. Holmlund, mobile +47 91 668 668