Finnforest recorded a €9m loss before tax during the first half of 2005, according to the interim report from parent company Metsäliitto. The industrial dispute in Finland’s paper sector had a €4m negative impact on Finnforest, while market valuations of foreign currency and interest rate derivatives reduced the result by €7m.
The company’s sawmilling business was worst hit by the dispute, with production in June only reaching half of the target level.
Sales were €1.02bn, up from €999m a year ago.
Finnforest said its results continued to be affected by poor profitability in both the redwood and whitewood businesses, while demand for birch/conifer plywoods and LVL remained “good “. Plywood production continued despite the lockouts in the paper industry.
Metsäliitto’s losses before tax deepened to €131m from €10m a year ago.
