Finnish Metsä Wood increased its profits in January-June of 2016, compared to the same period last year.
According to Metsä Wood’s financial report for the first half of the year, the wood products division recorded first half sales of €437.9 million, compared to the €452.2 million in the first half of 2015. The operating profit excluding non-recurring items was €20.2 million, up from the €18 million during January-June 2015.
Metsä Wood’s sales in the second quarter were €229.2 million, compared to the € 242.8 million during the same period of 2015.
The deliveries of spruce and pine sawn timber to North Africa increased markedly from the corresponding period in the previous year, and the deliveries of spruce sawn timber to Asia, and China in particular, were at a materially higher level than in the comparison period.
The oversupply in pine sawn timber was gradually balancing out. However, the profitability of sawing operations weakened as a result of the considerably lower prices of sawn timber. Average prices were reduced due to the low price level in North Africa, in particular, according to the company’s press release.
The delivery volumes and sales of Kerto LVL products grew markedly due to deliveries to Australia and North America, in particular. The delivery volumes and sales of both birch and spruce plywood decreased from the comparison period.
At the end of June, Metsä Wood announced the transfer of Metsä Wood’s sawmills in Finland to Metsä Fibre through an internal transaction. The transaction is estimated to be completed by the end of 2016. The transfer includes the sawmills in Vilppula, Lappeenranta, Renko, Merikarvia, Kyrö and Eskola, and their total annual production volume of sawn timber is approximately 1.6 million cubic metres.
In June, Metsä Wood announced it would launch an investment programme of EUR 100 million, related to the Kerto LVL and plywood operations. The plan is to implement the programme in steps by the end of 2018.