Setra reports 3Q operating profit of SEK 54 million ($6 million)

Wood products company Setra is reporting an operating profit of SEK 287 million ($31.9 million) for the period January–September 2018. Net sales totalled SEK 3,325 million ($369.4 million). Operating profit for the 3Q amounted to SEK 54 million ($6 million), with net sales of SEK 966 million ($107.3 million).

“We’re reporting an operating profit for the first three quarters of SEK 287 million ($31.9 million), which is an improvement of SEK 180 million ($20 million) on the previous year. USA and Europe have been extremely strong markets.

The building trade in Sweden has been subdued because of the hot summer, although industrial construction remains strong. We have seen some uncertainty in some markets during the third quarter, with the Chinese market in particular afflicted by a drop in deliveries and falling prices. This is seen as a temporary setback, however, as consumption is fundamentally strong. Deliveries to Egypt have also fallen, primarily due to a shortage of USD. However, other markets have been able to compensate,” explains Hannele Arvonen, President and CEO at Setra.

Cash flow from operating activities for the period January–September amounted to SEK 318 million ($35.3 million). The Group’s financial position is strong. The Group’s financial net debt amounted to SEK -120 million ($13.3 million) at the end of the period, which corresponds to a net debt/equity ratio of -8%.

Setra is one of Sweden’s largest wood products companies.

Photo: Hannele Arvonen, President and CEO at Setra.