Internal measures to improve efficiency helped Finnforest Corporation to post positive results for the first quarter.
Turnover increased to Euro426.4m from Euro297.8m and operating profits to Euro9.8m from Euro2.1m. Profits before extraordinary items was reported at Euro1.1m from -Euro4.2m.
The market areas and solid wood divisions achieved the best improvements in profitability, but the market for sawn timber remained difficult due, in main, to the unfavourable ratio between market prices for sawn timber and the cost of raw materials.
The engineered wood division and subsidiary Moelven returned results in line with expectations.
The company says the market for higher value-added wood products in Europe, where most are sold, is better than for basic products.
In the UK, the building market remained normal, compared with a complete slump in Germany. Finnforest says how the situation develops in Germany – as well as the prices charged for logs in Finland and the availability of raw materials – will be significant for its business.
