Moelven reports strong Q2/2021

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The international demand for wood products has led to a growth in Norwegian wood product company Moelven's turnover that the industry has hardly seen before.

''Our operating margin gives us unique opportunities to make the wood industry ready for the great demand for climate-smart products in the future,'' says CEO Morten Kristiansen of Moelven Industrier ASA.

Moelven had sales of NOK 7331.5 million in the first half of the year (NOK 5970.6 million in the same period last year). The operating profit of NOK 1113.0 million (NOK 286.6 million) gives a gross operating margin of 17.6% (7.2%) after the first six months of the year.

The explanation for the strong development lies in the international wood market. The figures from the first half of the year show that there is greater demand than supply in the market. This is partly due to lower production in key geographies such as Canada, higher activity than normal in the international construction market in addition to a greater shift towards the use of sustainable materials as a result of the green shift.

''We are in a strong economic growth for wood products, and we have hardly seen the like of development. At the same time as we see that the timber market for the industrial and consumer levels is unusually strong, the Construction Division is experiencing more sober times. This applies to glulam, building module and our office furnishing companies. We ourselves meet the high prices of lumber in our own industry, and this means that there is often a delay in the economic effect for these companies,'' says Kristiansen.

Higher timber prices

The CEO makes no secret of the fact that the strong price growth in the market has changed the operating margin for Moelven as a whole.

''We believe that the entire value chain over time will benefit from the strong interest in wood products, and we clearly see that timber prices have increased. Overall, we have never had such high prices as now, and it is gratifying that the value chain is strengthening into the green shift.

The woodworking industry has not traditionally been accustomed to such margins. Kristiansen points out that it is high time that the industry rises, so that it can be further developed.

 

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