Improving but still not good enough was the summary of Metsäliitto CEO Kari Jordan after the company posted first quarter pre-tax profits of €55m (2009: €93m loss).
Sales were broadly similar to a year ago at €1.22bn, while the wood products division recorded a €2m loss, including non-recurring items relating to the closure of the Kyröskoski sawmill and the impact of the Finnish stevedoring strike. Wood product sales were €192m (2009: €202m).
“The largest single factor behind the improved result is the increase in the price of sawn timber,” the company said.
“As a whole the market situation in the wood products industry was slightly improved during the first quarter. However, the cold and snowy winter throughout Europe had a negative impact on demand.”
Metsäliitto said sawn timber demand remained low during the period.
The company saw some signs of recovery in the transport equipment industry. As a result of the Chilean earthquake, market supply of softwood plywood decreased, giving an improved market situation for European producers, but curtailment of birch plywood production had to be continued.
“The operating result of the wood products business is expected to improve during the second quarter,” it said. “The demand trends in the construction market as well as in retail and distribution look favourable.”
