Best first quarter since 2008
Moelven Industrier ASA
Moelven Industrier ASA
Moelven improved its operating profit by NOK 71 million compared to the same period last year. The year's first quarter was the best since 2008.
Operating profit increased to NOK 101 million (NOK 30 million in the same period last year) for the first quarter. Operating revenues increased by 2.8 per cent to NOK 2,678 million (2,605).
CEO Morten Kristiansen of Moelven Industrier ASA says that it is a combination of significant improvements in underlying operations at several of Moelven's businesses, as well as good demand for the Group's products and services, that are the cause of the good results.
The Group is experiencing increased demand in all divisions, a strong improvement in results, increased equity and a reduction in net interest bearing debt. All divisions have improved results compared to last year.
“I'm particularly pleased that the realignment and restructuring measures we have implemented in the timber processing parts of the Group have yielded results. Overall, here we have an improvement of almost NOK 60 million compared to the same period last year,” says Kristiansen.
Kristiansen is also of the opinion that it's worth mentioning the drive for robotised module production at Moelven Byggmodul AB in Säffle.
“The effort - which a short time ago resulted in the company being named ‘“Lean Builder of the year’ at Bygge-galan 2017 in Stockholm for its work on smart production and robotisation – has led to an 80 per cent increase in production capacity,” Kristiansen says.
Robotisation, along with the installation of other production equipment, workstations and various systems, has brought almost 50 new jobs to Säffle.
“This is proof of successful development and realignment in Moelven,” Kristiansen claims.
For the Group as a whole revenues are expected to increase somewhat. The programme for operational improvement and structuring of the group continues unabated and will contribute to improved profitability for the underlying operations.
“The Group's composition, with divisions that experience different impacts from economic fluctuations and units that operate in different markets, provides a good starting point for further improvements. The result for 2017 is expected to be somewhat better than for 2016. The group has a long-term goal of a return on capital employed of 13 per cent over an economic cycle. We have sufficient solidity and long-term access to liquidity to implement the restructuring and improvement projects required to achieve this goal” Kristiansen says.