Moelven earned NOK 242 million on operations in 2010, an increase in profit of NOK 151 million compared with last year.
Moelven’s earnings for 2010 reached NOK 7185 million, representing an increase in turnover of NOK 937 million. Group earnings and profits in the fourth quarter were NOK 1885 million (1499) and NOK minus 36 million (62) respectively.
All three divisions improved results compared to 2009 for the year as a whole, but only the building system division maintained the same rate of growth in Q4.
President and CEO Hans Rindal of Moelven Industrier ASA described the year as one in which results showed major variations between the quarters.
”Despite the weak ending to the year, the accumulated operating result was significantly better than the preceding year, and is deemed to be satisfactory given the market conditions. A good year for Moelven, but with turnover of over seven billion, it should be!”, says Rindal.
GIVES EMPLOYEES THE CREDIT
Rindal gives the group’s over 3000 employees the credit for adapting to the realities of the finance crisis for achieving the result.
”2010 was the first year after the 2008/09 finance crisis with market conditions approaching the normal, and this, combined with cost-cutting measures implemented as a reaction to the crisis, is the main cause for renewed progress. In market terms, we have neither had the breaks nor hit any bad luck this year, we have simply coped to a large extent. In other words, we’re talking about a normal year, given the shape Moelven is now in,” adds Rindal.
A LEARNING CURVE
He admits that the ups and downs of recent years have taught him a lot.
”The most important thing I have learned is that we know so little of what is going to happen beyond the next 6 months. This means that we have to be prepared for rapid changes, and can adapt to things we can control. We know that it is a waste of energy to focus on negative factors beyond our control,” states Rindal.
LOCAL SOLUTIONS TO LOCAL PROBLEMS
Something else he has learned is that it is easier to make such rapid adaptations in a large organisation if it is divided into smaller units with greater independence, as there are then a lot of individuals ready to take responsibility for their own unit, and have the authority to make the necessary changes.
”That makes it easier to find motivation and find local solutions to local problems, which is often the most sensible and best,” he explains.
The board expects continued growth for the Building Systems division, but the group results at the start of 2011 will be unsatisfactory as a result of weak margins in the Timber and Wood divisions. Lower raw material costs coming into effect from the end of Q1 are expected to contribute to better margins for both divisions.
The Wood building materials division is also expected to benefit from the seasonal upswing in building activity for better results in Q2. Improved market conditions for industry in Europe are expected to take longer to contribute to improved results for the Timber industrial goods division.
Overall, the board expects group results for 2011 to be a little lower than the year before.