From an isolated point of view, the operating profit for the 2nd quarter amounted to NOK 84 million, compared to NOK 11 million in respect of the corresponding period last year. So far this year the Group has had a turnover of NOK 4,649 million (NOK 4,030 for the same period in 2013), while its operating income for the 2nd quarter amounted to NOK 2,389 million (NOK 2,182).
CEO Hans Rindal is happy with this progress.
"Roughly speaking this improvement in our profits is attributable to a combination of better prices and exchange rates for export items, internal operational improvements and better project implementation," says Mr. Rindal.
Sawmills performing best
The most marked improvements have occurred in the Industrial Products Division, Timber, although the Building Products Division, Wood has also performed well. Profits for the Building Systems Project Division were curbed by a slightly more challenging market for new industrial buildings in Norway. Demand in the RRE (Rehabilitation, Renovation and Extensions) segment continued to be satisfactory.
"Changes in international market conditions rapidly impact on our sales of timber products. The fluctuations affecting building products are less marked, while the demand for new industrial buildings in Sweden and Norway is the most important thing for our Building Systems Division which consists of enterprises involved in laminates, building modules, electrical/electronic products and building fittings." says Mr. Rindal.
The Group's long-term loans were refinanced at the end of the 2nd quarter and these loans will now continue to apply until the summer of 2017. The borrowing conditions are generally the same as those which applied previously and this refinancing arrangement will provide us with a good basis for future development of the Group," says Mr. Rindal.
The demand for the Group's products on the Scandinavian market is expected to remain stable during the second half of the year, with a slight improvement in Sweden which will compensate for a slight decline in Norway.
"It is harder to predict the export market for sawn timber, but we have nevertheless observed that demand is continuing to be good in the 3rd quarter," says Mr. Rindal.
The last quarterly report can be viewed here: http://quarterlyreport.moelven.com
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, please 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
Wood Norway: Managing Director Rune Bergsodden, mobile +47 95145540
Moelven Denmark: Managing Director Michael Helmershøj, mobile +45 40452336
Building Systems Project Division:
Head of Division Marcus Johansson, mobile + 46 10 122 6686
Moelven Byggmodul AB: VD 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: Direktor Åge Holmestad, mobile +47 (0) 95864620
Moelven's fitting operations (Nordia and Eurowand): Director Trygve Toften, mobile +47 90874964
Moelven Elektro AS: General Manager Atle Bergo, mobile + 47 48283400
Industrial Products Division, Timber:
Head of Division Ole Helge Aalstad, mobile +47 90014343
A list of our companies at local level is available here: