Profit of NOK 91 million for Moelven

Operating revenues in 2009 was reduced by just over 1 400 million, from 7 658 in 2008 to 6 248 million in 2009. Operating revenues in the fourth quarter alone totalled NOK 1 499 million (1 724), with operating profit at NOK 62 million (minus 53).

A satisfied CEO
President and CEO Hans Rindal is pleased with the positive figures for 2009, particularly the figures for the last quarter.

- When it comes to the last quarter, this is one of Moelven’s best fourth quarters. Considering the underlying economic situation, it may be the best ever for Moelven. We have managed to keep our heads above water in a year in which the international economy has been through the worst economic downturn since World War II. At the start of the year, we were unable to adjust our cost level to the serious fall in income quickly enough, while the year-end figures show that the measures that we were able to implement during the year worked better than we had hoped for, says Mr. Rindal.

Working hard for the money
Mr. Rindal is convinced that the financial figures show that Moelven has worked hard for the positive figures by implementing effective cost-cutting measures.

- In earlier years we made good profit, but then we also had the markets on our side. This time around we have not had much help from the market. The truth is that we here at Moelven have pulled together and really made a great effort on the things that – despite lower sales – we were able to influence. All the employees deserve praise, says Mr. Rindal, adding:
- Moelven consists of 46 independent companies in Norway, Sweden and Denmark. Many of the employees working in these companies saw early on the problems that the international economic situation could have and how it might affect us. Instead of pointing at others, we did what we know how to do well – we took charge of what we ourselves could influence. When many in a large organisation take responsibility and work hard toward a common goal, then the impossible becomes possible. This is the main reason for the positive result in a challenging year. The fact that we have several legs to stand on has helped us through this low market trend, which has affected the three divisions differently. It has also affected the various markets differently as well, says Mr. Rindal.

Fewer employees
Hans Rindal does not conceal that this difficult process has cost many colleagues their jobs.

- It’s not a good thing, and I wish we could have avoided it, but the current market conditions made reducing the number of employees unavoidable. We now have 293 fewer employees compared to a year ago. We want as many employees as possible -- people working is what earns the company money. But we cannot have more jobs than we have income to pay for. We cannot risk losing the remaining jobs as well, concludes Mr. Rindal.

Future prospects
While 2009 has been a year of adapting to strongly fluctuating market conditions in the wake of the financial crisis, the Board expects 2010 to be a year with less need for restructuring. There will, however, still be challenging market conditions in many areas ahead, particularly during the start of the year. With many adjustments to operations already implemented, however, the Group expects the end result in 2010 to be somewhat higher than in 2009.