Moelven Industrier ASA has a strong first six months behind it, with operating income of NOK 309.1 million. “There is a lot to suggest that the remainder of the year may be more unpredictable,” says CEO Morten Kristiansen.
Moelven reported sales of NOK 5,539.8 million in the first six months of the year. This is a decrease of NOK 233.6 million compared to 2018. The operating profit of NOK 309.1 million is approximately the same as in 2018 (NOK 308.9 million).
CEO Morten Kristiansen of Moelven Industrier ASA emphasises the unpredictable situation in the global economy as part of the explanation for the change in pace for sales.
“The trade conflict between the US and China and the Brexit situation are creating a more unpredictable market for wood products used for industrial purposes. In Central Europe major storm fellings and powder-post beetle attacks have led to more timber being harvested than what is ordinarily the case, which has affected prices. We have experienced a few delayed starts to several apartment projects using building modules for apartments in both Norway and Sweden. At the same time, it’s encouraging that demand for building products has maintained the same level as the good previous year, and this has a positive impact on the results for the first half of the year,” Kristiansen explains.
In recent years Moelven has implemented an improvement programme, and is continuously working with the corporate structure to create as sustainable and competitive units as possible.
“We shall further intensify focus on cost-effective operations going forward. With a more unstable market, we have to work more efficiently to reduce costs in our production,” Kristiansen says.
Pellets sold out
Throughout 120 years, Moelven has always shown that the group is evolving, and the company has noted several milestones in the second quarter. In April it became clear that Moelven Pellets AS had entered into a long-term contract with the Swedish SCA group that comprises the factory’s entire production volume. Mjøstårnet has received official recognition from the international skyscraper organisation CTBUH that the building is the world’s tallest timber building. Moelven Byggmodul AS celebrated the delivery of module no. 90,000 before the summer, and several Moelven operations have celebrated their 100th anniversaries. This applies to both Moelven Töreboda and Moelven Våler.
“Our ability and willingness to change is the backdrop to our rich history, and will remain key to supplying sustainable products and solutions in the years to come,” Morten Kristiansen says.