Metsäliitto Group’s wood products division recorded an operating loss of €35m during the first half of 2009. Divisional sales were €425m, down from €644m a year earlier.
The group said the wood products business faced an extremely difficult market situation during the first half, despite a seasonal pickup in construction and DIY sales. Production restrictions on sawn goods led to pine product prices increasing towards the end of the period.
Group-wide, Metsäliitto’s pre-tax loss including non-recurring items (NRI) was €257m, compared to a profit of €80m a year earlier. Second quarter losses totalled €95m. Sales of €2.49bn fell from €3.38bn during the first half.
Metsäliitto said sawn wood production must be restricted if sufficient competitively priced raw material (in relation to finished goods prices) was not available enough in the autumn.
“Demand is expected to remain challenging,” it said.
