Finnforest recorded a €1.3m loss before extraordinary items for the first half of 2004, compared to profits of €3.5m a year ago.
Metsäliitto, Finnforest’s parent company, said sales went up 9% to €999m, from €919m a year ago.
The solid wood division saw sales grow to €277m from €266m but showed a loss of €0.4m compared to profits of €7.7m in 2003. The decline was blamed primarily on falling sales prices for sawn timber, with invoicing prices more than 5% down in the second quarter.
Sales in the engineering division increased to €162m from €152m and operating profits were €9.5m, up from €3.2m. Demand for plywood strengthened and prices stopped falling during the second quarter, while the I-joist, ThermoWood and glulam businesses also developed positively.
Moelven, which is part of Finnforest, recorded sales of €349m, up from €314m, and operating profits were €3.1m, down from €7.9m. Its sawmills did not reach targets due to difficulties sourcing sawlogs but the glulam operation “developed favourably”.
