Finnforest has posted improved annual operating profits of €37.5m, thanks in part to an improved building sector in 2004.
The company, which completed restructuring last year, also saw its 2004 sales grow to €1.92bn, up €133m from 2003.
Finnforest said its plywood, Kerto and particleboard businesses benefited from the improving construction sector, but the sawn timber market grew steadily more difficult as the year progressed, due to excess supply.
The wood products division saw sales increase marginally to €729.6m but an operating loss of €1.8m was unchanged from 2003. Supply and demand for spruce sawn timber remained in balance, resulting in prices falling by about 2% on the previous year, while a slight oversupply of pine sawn wood caused prices to dip by 6%.
Sales in the distribution business rose slightly to €563.1m, with operating profits growing to €12.6m from €7.5m in 2003.
The building and construction division, which includes Finnforest Merk GmbH, Kerto and glulam producer Kuningaspalkki, saw sales rise to €132.3m from €102.3m a year ago. Operating profits went up by just €100,000 to €4.3m.
