(Ringsaker Magazine) The group had sales of NOK 2.77 billion in the third quarter. This is a decrease of NOK 342 million compared to the corresponding period in 2022. The operating profit in the third quarter ended at NOK 14 million. Last year, Moelven was able to record a result of NOK 229 million in the third quarter of last year.
This is revealed in a press release.
– Seen in the light of the demanding market situation we are in, the result is satisfactory. But on the whole, this is not something we are happy with. To be able to continue developing the wood industry in the way we want, we are dependent on a better operating margin, says CEO Morten Kristiansen.
He says that Moelven is experiencing tough times now.
– The increased costs in society result in a lower profit on our products, which in turn makes it difficult to make money. We don’t know how long it will last, says Kristiansen.
Brake in the professional market
The companies in the Building System division, which produce glulam, building modules and office furnishings, experienced good activity in construction, construction and infrastructure, as well as other smaller projects this quarter. They have nevertheless had to accept the consequences of the uncertain future prospects.
– We had large projects with us into the recession, but as they are completed and fewer new projects are started, it has eaten away at our order reserve, says the CEO.
In the third quarter, it was the professional market in Scandinavia that declined the most, as a result of fewer new building projects being started. The uncertainty surrounding the further economic development has led to the group having to notify 87 employees in Moelven ByggModul AB and 25 employees in Moelven Töreboda AB of their dismissal this autumn.
– It hurts to have to give such a message to talented employees, but we simply do not know if we have enough work for all our people in the future, says Kristiansen.
On the international export markets, demand for sawn timber products was satisfactory, but falling in the quarter. The same applies to the rehabilitation, conversion and extension market.
Preparing for the future
Despite the tough times, the CEO believes that the future for wood products is bright.
– Right now there is a brake in the market, but sooner or later it will turn around. The big uncertainty is when it happens. We are convinced that our climate-smart products and services will become more important than ever in the future, says Kristiansen.
He says that Moelven uses the time during the recession to prepare for the future.
– We have an economic situation at the bottom which puts us in a position to carry out the large investment projects in Norway and Sweden that we have decided on. When the market turns, we are ready to build a sustainable future in wood, says the CEO.
2023-11-05 08:05:21
#Barely #profit #Greater #uncertainty
