2020-01-22 09:25:16

Consolidated Research Feed

Bergs Timber: Weak Q4, but market is set to improve in 2020 - Introduce

"We estimate a clean Q4 EBITDA of SEK 9m, down from SEK 18m in Q3. The sawmill division is likely to deliver another weak quarter with an EBITDA of SEK -7m. This is down from SEK -2m in Q3 due to lower prices and seasonally higher costs. While market conditions in sawmilling are tough, we expect the Further Processed segment to deliver solid results with an EBITDA of SEK 19m (down from SEK 21m in Q4’18pf).

The good news is that wood prices also have dropped, which will help earnings in the first half of 2020 (lower wood costs are realised with a lag due to inventories). Q4 should therefore be the weakest quarter and EBITDA should start to improve sequentially from Q1. Q4 results are due on 5 February."

Link to commissioned research below.
https://www.introduce.se/contentassets/1947ea438d314459ab40d7945245caa9/pdf/weak-q4-but-market-is-set-to-improve-in-2020.pdf

Commissioned research feed

Bergs Timber
analytics commodities consolidatedresearch crfabg forestrypaper materials share stocks