World News | 9
Nordic sawmillers report tougher Q1
Nordic timber producers continued to report challenging market conditions in their wood products divisions in Q1, posting either big reductions in earnings or losses compared to a year ago. However, most agree that the market has seen some stabilisation in Q1 following serious falls in the second half of 2022. SCA’s wood division has recorded an 80% fall in Q1 EBITDA to SEK123m compared to a year ago. The earnings were, however, better than Q4, 2022 when EBITDA stood at SEK71m.
SCA said demand for solid wood products remained weak in all customer segments during Q1, 2023 and in most regions during the first quarter.
Selling prices were stable compared with the preceding quarter, while earnings were strengthened through an improved product mix. Deliveries were down 4% on a year earlier at 490,000m3 Q1, 2023.
Holmen’s wood products division saw its EBITDA fall to SEK70m from SEK580m a year ago.
It was, however, better from the SEK-15m EBITDA recorded in Q4, 2022 as the market situation stabilised with prices largely unchanged following a significant decrease during the second half of 2022. A better sales mix helped profits in Q1, 2023.
Setra reported an operating loss of SEK-64m (2022 Q1: SEK480m) for Q1, 2023.
Ziegler acquires Romanian sawmill site from HS Timber
Germany’s Ziegler Group is set to acquire the Romanian sawmill Sebes from Austria’s HS Timber Group.
HS Timber Group announced that a purchase agreement was signed on April 14 as part of a share sale. The execution of the transaction is expected to be closed in the middle of the year following regulatory approvals. The purchase price was not disclosed.
The Sebes sawmill was the first production site of HS Timber Group in Romania. “We are pleased that we found a successful family business that will continue the sawn timber production at the site and expand the business,” said Gerald Schweighofer, CEO of HS Timber Group. For HS Timber Group, the purchase of Romanian logs has been limited by law to 30% of the annual harvest volume for each individual assortment since 2016.
Due to the geopolitical situation, Ukraine, Russia, and
Belarus are no longer suppliers of raw materials for Romania. Complex import regulations and rising logistics costs are making timber imports increasingly difficult. With this sale, HS Timber Group is consolidating its long-term future in Romania and will subsequently be able to make better and more efficient use of the capacities of its existing mills.
HS Timber Group operates a sawmill, a blockboard plant and a post & beam production facility at other locations in Romania. Additional sawmills are located in Germany and Finland. With two further greenfield projects, the Group is successfully continuing its global expansion. Stefan Ziegler, managing director of Ziegler Group, said the location in the centre of Romania was an ideal complement in the sawmill division of the Ziegler Group with the existing production sites in Germany and Sweden.
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Net sales for the company totalled SEK1.41bn (2022 Q1: SEK1.83bn) for the period. “The strong deliveries continued in the first quarter, but unfortunately with negative margins for Setra,” said Setra’s chief executive officer Katarina Levin. “This is mainly down to low prices and high raw material costs combined with higher electricity costs.” Setra said prices picked up over the quarter, but not enough to compensate for the rising costs of raw materials, electricity and fuel.
Stora Enso has reported a challenging environment for its wood products division with a Q1 operating loss being recorded by the business unit. The unit posted operational
earnings before interest and tax (EBIT) of €-11m in Q1, down from €118m in Q1, 2022. Wood product deliveries were down 14.4% in Q1, totalling 1.044 million m3 1.21 million m3
(2022 Q1: ).
“Wood products continue to be challenged by the weaker construction market with fewer building permits and lower rates of home renovations,” commented Stora Enso chief executive officer Annica Bresky.
The results were impacted by lower sawn wood prices, lower volumes and continued high raw material costs. To protect margins, Stora Enso says it will take actions to respond to fluctuations in demand with reinforced cost controls.
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www.ttjonline.com | May/June 2023 | TTJ
World News
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