Bergs Timber - better profit

October 7, 2010 by timbercommunity

Bergs Timber AB. net sales amounted to SEK 916.0 (779.7) million sek, operating income was 41.9 (-25.0) million, which resulted in a profit after financial items 32.0 (-38.5) million according to a Financial Statement, 1 September 2009 - 31 August 2010 . Profit after tax was 24.1 (-26.9) million, which resulted in a loss per share after tax by 3.49 (-3.90) SEK. Equity per share amounted to 39.30 (35.80) SEK. The improved earnings for the fiscal year compared to same period last year mainly due to improved selling prices for lumber, but also increased sales of products  However, higher raw material costs and lower production and offloading negative impact on earnings.
 

- Earnings were affected by reported foreign exchange differences 2.5 (4.0) million, claims 5.2 million (0) and revaluation of the Group's growing stock 4.4 M (0).  Cash flow from operating activities amounted to 43.3 (51.8) million sek. Production of sawn timber decreased by 5 percent during the fiscal year compared to same period last year. Scarcity of raw material during the autumn and a harsher winter than usual have been limiting factors.

During January to August 2010, according to forest industry statistics, the production of timber products in Sweden increased with 8 percent and in Finland by 28 percent compared with the same period last year. It was also increased production in other major producing countries such as Germany, Austria and Russia.  For these five countries together is the annual growth rate in 2009 compared to nine percent higher today, but it is 15% lower compared with 2007.

Stocks, however, remains comparatively low in customer and producer to but approaches the normal level. Stocks in Swedish sawmills are at the end of August 5 percent higher than twelve months ago and at the Finnish sawmill as 38 percent higher however, started from a very low level. Since spring 2009 the market has been relatively strong and prices have gradually been increased.