Most Companies Also Showed Declines in Turnover and Results

The business trend among Scandinavian forestry and timber groups has weakened further overall in the fourth quarter of 2011. Most companies also showed declines in turnover and results from October to December, after the previous two quarters had also been characterised by falls in results. Companies continue to attribute the weak trend in key figures towards the year end mostly to overall high raw-material costs and comparatively weak demand accompanied by a high level of supplies, as well as a declining trend in prices for lumber. Swedish companies are still confronted by unfavourable currency-exchange rates between the US dollar and the Swedish crown which have resulted since the beginning of 2012 in competitive disadvantages both on domestic and export markets. Against that backdrop, many concerns closed out the 2011 business year with poorer results. Turnover was in many cases also down year on year, after 2010 had seen widespread double-figure percentage growth. Source: euwid-wood-products.com