RusForest AB Interim Report, April 1 – June 30, 2010

August 26, 2010 by timbercommunity

Interim results for the three months ended June 30, 2010
The Groups financial result was negatively affected due to the fact that sawlog deficits and unsecured log deliveries impeded sawn wood production, sales volumes and increased costs during the period. st 2010. Total turnover for the three month period ended June 30, 2010, amounted to SEK 91.7 million (SEK 95.4 million for the three months ended March 31, 2010). The operating result before financing costs for the period was SEK -44.7 million (SEK -28.5 million). Net result for the period was SEK -54.6 million (SEK -28.4 million). Earnings per share was SEK -2.50 (SEK -1.29). Cash and cash equivalents decreased by SEK 14.4 million during the period, from SEK 22.7 million at March 31, 2010, to SEK 8.3 million at June 30, 2010.

Significant events during the second quarter
Three of the Group’s subsidiaries, PIK-89, PIK-2003 and Vector-2003, were merged on April 1, 2010, and now form a new legal entity: RusForest Ust-Ilimsk.
 
 As a step to strengthen its Swedish management team, RusForest AB appointed Anders F. Börjesson as deputy CEO in April 2010. The position entails, inter alia, responsibilities as Compliance Officer for RusForest.
In order to expand RusForest’s earnings base and geographical presence, RusForest signed a letter of intent with Nord Timber Group’s principal owners with the aim of merging the two companies by way of a directed share issue in RusForest, payable in kind.
 The annual general meeting held on 20 May 2010 resolved, among other things, to adopt RusForest’s employee stock option plan 2010/2015 and to elect KPMG AB as RusForest’s auditor for the time until the end of the annual general meeting to be held in 2014.
Martin Hermansson was appointed President and Chief Executive Officer of RusForest AB effective June 1
 RusForest’s extraordinary general meeting held on 24 June 2010 resolved in accordance with the Boards proposal to adopt new articles of association whereby the limits for the company’s share capital and number of shares were