Kent Torwald, Setra chief executive, said the company was helped by the market and also by extensive work within the company.
Compared to the first quarter of 2005, Setra saw net sales increase by 16% to SKr1.428m. Operating profit rose to SKr24m, and improvement of SKr75m, and profit after financial terms reached SKr13m compared to –SKr63m. The company also shed around 60 jobs, taking the average number of employees to 1,430.
Mr Torwald said: “The result is the best for two years. We were helped along by the market, in particular through strong demand for redwood which contributed to a favourable price development. This improvement is also the result of extensive work within Setra with a sharper business focus through efficiency enhancements and efforts related to both costs and revenues.”
In line with the strategy for increased added value, a SKr16m investment was decided in the first quarter, with the aim of raising production capacity by 50% in the Långshyttan glulam factory.
Mr Torwald said: “Setra has made some progress towards long term profitablity. We can seen an important trend reversal and clear signs of a positive development with continued earnings improvements.
“Earnings must be higher, however, and continuation of the internal process of change is essential.”
