A drop in sawn timber prices coupled with increased raw material costs weighed on Vapo Timber’s profitability in the first quarter of 2012.
Vapo said its timber division recorded an operating loss of €2.9m (2011: €700,000).
Turnover reached €27m (2011: €30.4m). Production was only 2% lower than a year ago but sawn timber prices dropped by 5% and raw material costs rose 2%.
Elsewhere in the Vapo Group, deliveries of wood pellets declined by 5% to 217,000 tonnes and turnover fell 12% to €27m (2011: €43.8m). Operating losses reduced to €1.1m.
Group-wide the company operating profits of €21.4m (2011: €24.2m). Vapo Group said it was prepared to sell off non-core assets in order to help achieve its financial targets.
