Good results for Moelven
Moelven Industrier ASA
Moelven Industrier ASA
Moelven earned NOK 80 million from operations in Q3 and improved the result by NOK 62 million compared to the same period the previous year.
In terms of results, this is Moelven's best third quarter since 2010. The Group delivered a gross operating margin of 6.5 per cent, which is 2.3 percentage points better than for the same period last year. Revenue in Q3 was NOK 2,263 million (2,028 million).
“The good result is closely linked to the Group increasing its operating revenues by NOK 235 million compared to the same quarter last year. All divisions in Moelven have contributed to the improved result. The Wood and Building Systems divisions have delivered positive operating revenues of NOK 46 million and NOK 42 million respectively,” says CEO Morten Kristiansen of Moelven Industrier ASA.
The CEO says that the Building Systems division is doing particularly well in the building module business in Sweden.
“In Sweden the building module business is still seeing a high level of activity and good earnings. The main reason for the good result is sound implementation of many projects with a high level of standardization and increased productivity at the factory. In the Wood division progress is due to a combination of more activity in several product areas and better operations,” Kristiansen says.
Kristiansen believes that the work on rationalizing operations also plays a major role in the improved results of the Timber sawmill division.
“Improved operations at several of our sawmills enabled the division as a whole to more or less break even. Even though the division improved its result compared to Q3 last year by NOK 12 million, the result remains unsatisfactory. Market conditions were somewhat more challenging than in the same period last year, but the ongoing internal improvement efforts must be extended in order to further rationalize operations,” Kristansen says.
Demand for industrial wood is expected to remain high in many markets.
“At the same time, a high level of supply will contribute to a risk of continued pressure on market prices in certain markets. The exchange rates for the Norwegian krone and Swedish krona are at levels that give a good point of departure for competition on the export markets. A continued good level of activity is expected in the timber market in the fourth quarter,” Kristiansen says.
The Group expects continued weak growth for housing construction in Norway.
“In Sweden, housing construction is still increasing. The main share of the Group's deliveries is made to the renovation and remodelling markets, which are more stable than the new building market. Activity levels are expected to comply with normal seasonal variations, with a high level of activity in the first part of the period, followed by a reduction towards the end of the year,” Kristiansen says.
The level of activity in the building and construction sector in Scandinavia is expected to be on a par with 2014, with normal seasonal variations throughout the year.
“At the start of the fourth quarter the Building Systems division has a better and more diversified order backlog than at the same time last year. The divisions' companies have adapted their capacity and cost structure to the prevailing market conditions.”