Friday, April 23, 2021
Wood products company Setra has reported an operating profit of SEK 177 million (12) for the first quarter of 2021. Net sales totalled SEK 1,184 million (1,094). Setra is reporting an earnings improvement of SEK 165 million for the first quarter of 2021 compared with the same period last year. The improvement was due to high selling prices as a result of strong market development and positive currency effects.
“The healthy demand and robust price levels we have seen in the first quarter look like they’re continuing in Q2. Our employees deserve real praise for the significant responsibility they take in their day-to-day work to ensure the Covid-secure operation of the business,” said Setra CEO Katarina Levin.
January saw the dispatch of Setra’s first delivery to the US from the new trimming and planing plant in Hasselfors. The products being delivered to the US are construction joists. All goods are planed and have specific lengths for the US market, which requires an efficient production chain and customisation of products that starts in the forest.
In late February it was announced that Setra is supplying the timber frame for the second building in the Cederhusen housing development in Hagastaden, Stockholm. The frames will be manufactured and packaged in Setra’s crosslam factory and transported to the construction site just two hours away. Setra’s deliveries for building two began in early March and will last for around 10 weeks.
Setra’s strategic investment in a pyrolysis plant in Gävle’s Kastet industrial area is proceeding according to plan, with construction of the groundbreaking factory, to convert sawdust into non-fossil-based pyrolysis oil, underway since March. The facility is expected to enter operation in the fourth quarter of this year.
Cash flow from operating activities in the first quarter amounted to SEK -85 million (30). The negative cash flow was due to an increase in working capital. Net financial debt amounted to SEK 415 million (452) at the end of the period, which corresponds to a net debt/equity ratio of 25 percent (32).
Tags: Covid-19, COVID-19 pandemic, profit, Setra Group, Setra’s UK, woodworking and manufacturing, woodworking business, woodworking industry
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