Operating profit/loss for 2011 was 88 262 tsek (248 315 tsek). The main business areas of Timber, Energy and Packaging have had a positive development during the year whilst the market for Paper has deteriorated heavily. The equity for the VIDA Group, amounts to 36% (36%).

Timber
The production and shipping of sawn wood products remained consistently strong during 2011. Total production amounted to 1 158 000m3 (1 087 000m3). The market for sawn wood products has been weak during 2011 with high raw material costs having a negative effect on profitability. The prospects for 2012 continues to be weak and we do not see any rapid changes in the economic situation. However our purchase of raw material, albeit at continuously high costs, has been very good during the year with a strong inflow of timber to all of our facilities and we go forward with raw material secured for the whole of 2012.


Energy
The market for forest residue including crude biofuel has deteriorated during the last six months due to an increase in supply and a stagnation of prices.  An overproduction of fuel pellets has resulted in profitability coming under pressure for both the Company and the industry as a whole.

Packaging
Alterations and effective planning made during the year is starting to pay off. The production and demand for all the company’s products has been at an all-time high and all the facilities show a positive result. Our customers within the vehicle industry have indicated lower volume’s during the beginning of 2012 but expect this to be recovered during the second quarter.

Paper
The result and production are still not at a satisfactory level.  Investment made to improve the process of dissolving pulp has pushed the profit margin down. Production is now at a higher level and along with firm sales prices we look forward to a more positive 2012.  

Liquidity

The liquidity of the Group is good. Available funds in the bank accounts  of 275 million SEK at the end of the year, together with further credit approval of 100 million SEK we estimate that the liquidity during 2012 will be good.

Future
The weak economic climate in the Sawmilling Industry continues to affect the margins profitability of the business. Several sawmills have been shut down and many have reduced their production levels. The VIDA Group has consistently invested in its facilities and along with a well structured purchase and sales organization, recently strengthened by the year's acquisition of VIDA HN AB and Villa VIDA AB, the Group continues to be a leading player in the forest industry. VIDA stands strong in the current economic climates and is set ready for high-capacity volumes when the economy recovers. VIDA believes that 2012 will be another weak year in the sawmilling industry but continue to plan for a high level of production in all its facilities.

The annual accounts have not yet been finally audited by the company´s accountants.

For further information please contact CEO, Santhe Dahl +46 70-5513055 or Head of Corporate Communications, Lotta Fonsell, +46 70-2275567

Alvesta 2012-02-15

Santhe Dahl CEO