Moelven's best result since 2007
Moelven Industrier ASA
Moelven Industrier ASA
Operating profit in the second quarter increased to NOK 175 million compared with 48 million for the same period in 2015. It is the group's best quarterly result since 2007.
At the same time Moelven's accumulated operating profit for the first half of the year increased to NOK 205 million (NOK 70 million for the same period the year before). It is an improvement in operating profit in the 2nd quarter and the first six months the year of NOK 127 million and NOK 135 million compared with the same periods in 2015.
Morten Kristiansen, CEO of Moelven Industrier ASA is delighted with the efforts and results.
- The figures show a strong improvement in operating profit compared with the same periods last year. We actually need to return to pre-crisis levels - that is prior to 2007 - in order to see better results. I am very pleased and would like to thank all employees for their efforts, says Kristiansen.
Taking into account write-downs and cost adjustments in the 2nd quarter of 2015 totalling NOK 70 million, the operating profit improved by 46 per cent.
- This good result reflects a combination of generally positive market conditions and the effects of internal improvements, says Kristansen.
Revenue in the quarter also increased significantly compared with the same periods last year. Operating revenues in the 2nd quarter increased by 11.5 per cent to NOK 2,930 million (2,628). Operating revenues for the first half of the year increased by 11.9 percent to NOK 5,535 million (4,944).
- For June we could for the first time in Moelven's history record operating revenue for one month of around NOK one billion, and we now have an annual sales rate of over NOK 10 billion. This is mainly due to increased volumes, says Kristiansen.
Despite improvements, there are still units that affect the Group's result negatively.
In the action plan for operational improvement and structuring of the group that forms part of the long term strategy plan, put in place in order to reach the Group's profitability targets, significant resources have been allocated to improvement work in these units. The programme continues with high intensity and will contribute to increased profitability in the underlying operations, says Kristiansen.
A new long-term loan agreement for the Group that replaced earlier loan agreements was signed in June.
- Having funding in order with satisfactory agreements with banks is very important for us and is a guarantee for continued operation and development in the group, says the CEO.
Stable development is expected in the market for Moelven's mechanical wood operations. The positive trend is continuing in the project activities with good demand both in Norway and Sweden for laminated wood and modules as well as in Sweden for interiors. The exception is the Norwegian interior decoration business area where the market is declining. Capacity adjustments will be necessary.
- For the Group as a whole revenues are expected to increase somewhat. - The group has a good starting point for further improvements. The result for 2016 is expected to be somewhat better than for 2015. The group has a long-term goal of a return on capital employed of 13 per cent, says Morten Kristiansen.