Swedish sawmiller Rorvik Timber has seen its loss after tax widen to SKr32m in the second quarter (2010: SKr15m loss)
Sales were up to SKr401m (2010: SKr341m).
For the first half, Rorvik’s losses after tax swelled to SKr91m.
Rorvik’s board of directors described the timber market over the past nine months as having gone through the worst crisis since the 1970s, with the industry’s export price index having fallen by a further 8% for pine and 4% for spruce during the first half.
However, capacity utilisation across the company’s seven mills should increased from 45% last year to 60% this year, giving an expected 2011 production volume of 600,000m³.
“Our goal is to ramp up to full capacity when the raw material and wood products market allows [us to],” it said.
“A correction in commodity prices are necessary for the sawmill industry to recover to reasonable profitability.”
Rorvik said financial uncertainty in European and developments in North Africa and the Middle East meant that construction in most of the major timber-using markets was far below normal.
