Moelven's Pre-Tax Profit Remains Negative at -NOK14.4m.

Although the Norwegian company Moelven recorded an operating result of +NOK11.1m for the second quarter of 2013, its pre-tax profit remains negative at -NOK14.4m. The quarterly sales revenue for the period of April to June almost matched last year's level at NOK2.182bn. In spite of slacker demand on the domestic and other Scandinavian softwood lumber markets, the earnings position was improved quite perceptibly in the "Timber" division. Sales revenue generated here was 11.5% higher than in the same quarter of last year at NOK616.4m. At the same time, the operating result was almost trebled to NOK17.7m. The decisive factor for this considerable growth was an increase in the delivered volumes of softwood lumber, especially to North Africa and the Middle East. Parallel to this, price increases were pushed through on a variety of lumber sales markets which, combined with further reduced log procurement costs, were a key factor contributing to the positive development in the division's results.