Net sales of wood products helped Swedish company Setra record operating profits of SKr161m in the first quarter of 2007, a year-on-year increase of SKr24m.
The company’s wood products division saw net sales increase to SKr437m from SKr352m a year ago.
According to the firm’s chief executive Kent Torwald, the good performance was despite the rising cost of raw materials.
“Despite rising raw material prices, it is gratifying to note that the operating margin rose from 8.3% in the fourth quarter of 2006 to 10.3% in the first quarter of 2007,” said Mr Torwald, who is also Setra’s president. “A strong market with continued high demand and rising prices contributed to this.”
Setra’s interim report for the first quarter of 2007 states that rising prices can also be attributed to a cautious European market coupled with demand from China and Japan taking Russian supplies to the east.
Sawn and processed wood products were highlighted by Setra for having a positive impact on the firm’s profits, although the price of sawlogs increased.
Mr Torwald added that continued low stocks, an order backlog and sustained demand should give Setra further opportunity for growth.
