Moelven increased operating profit by 25.9% in 1H2017

Moelven reported 25.9% increase of operating profit in 1H2017. The indicator accounted for NOK 258 million (around USD 33 million) vs NOK 205 million in the same period a year ago.

Anders Lindh, Moelven’s chief executive, commented:

“Demand for the group’s products and services was very good. The reduction in the quarter’s result compared with the second quarter of 2016 was down to displacements in activity levels between the first and second quarters due to Easter falling in the second quarter and the high season for construction products starting a bit later because of adverse weather conditions.

However, the rate of deliveries to North Africa and Asia was down slightly due to problems related to maritime transport and public regulations. Together with the improvement in underlying operations, the currency situation helped to maintain competitiveness.

The price trend for both sawn timber and processed products was positive compared with the second quarter of 2016. Overall, operating revenues and operating profit are expected to rise slightly in 2017. The programme for operational improvements and structuring the group in line with the long-term strategy plan continues unabated and will contribute to continued improved profitability for underlying operations.”

Earlier Moelven Group informed that the Board of Moelven Norsälven AB is considering closure of the sawmill.

About Moelven:

The company is operating its units located in Scandinavia and raw materials obtained from forests close to the production facilities. Scandinavia is also Moelven’s principal market. The Group has its head office at Moelv in Norway, and comprises 49 production units and 34 sales, service and assembly offices. Most of the production units are companies and premises with strong local roots in rural areas and small communities in south-east Norway and west central Sweden.  The Group has approx. 3,400 employees and an annual turnover of NOK 9 billion (around USD 1100 million).

Source: Woodbizforum