Metsä considers cuts in sawn timber production

The balance between demand and supply in sawn timber has weakened due to increased supply in the Nordic countries, says the Finnish company,Metsä, in its latest financial report. Metsä says that production of sawn timber might have to be restricted during the remainder of the year. The weak trend in construction in the company's main markets in Europe decreases demand for wood products, Metsä points out. In other markets demand is picking up.

However, Metsä expects its sales in the wood products segment to slightly grow in the fourth quarter of 2014, compared to both the third quarter and the corresponding period in the previous year. The strengthening exchange rate of the US dollar supports the sales prices and competitiveness of wood products in markets outside Europe.

Financial details
For the first three quarters of 2014, Metsä Group’s sales amounted to EUR 3 723 million (1–9/2013: EUR 3 719 million). The company's operating result excluding non-recurring items was EUR 301 million (1-9/2013: EUR 256 million).For the third quarter alone, Metsä Group’s sales were slightly lower than in the third quarter of 2013 (EUR 1 204 million vs EUR 1 214 million in 2Q/2013). The group's operating result was EUR 104 million, higher than in the 3Q/2013 (EUR 73 million).

The Metsä Group’s president and CEO, Kari Jordan, commented on the results: “The Metsä Group has maintained its solid financial performance by means of cost-efficiency and high productivity. Because economic growth in Europe is at a standstill and no market recovery is in sight, we are also seeking growth outside of our main market Europe, in particular in North America and Asia. Our paperboard business is on a good growth track in North America, and our wood products industry has also strengthened its position outside Europe. Approximately one quarter of our pulp deliveries are shipped to Asia, which is an interesting market area for our other business operations as well.”

Source: RS/MG