Koskisen Corporation: Pre-silent period call – Q&A on key themes for Q4 2024

On 15 January 2025, Koskisen Corporation held a pre-silent period call for analysts following the company. This press release summarizes the key questions and answers discussed during the call.

Koskisen's silent period for the Financial Statements Release 2024 publishing will commence on 17 January 2025. The Financial Statements Release for January-December 2024 will be published on 17 February 2025 at 8:30 a.m. EET. A Finnish-language webcast will follow at 10:00 a.m. EET, with the link to be provided later.

Q4/2024 – Q&A highlights

MARKET

Q: How have birch plywood order flows developed in recent months?
A: Order flows for panel products have remained mostly stable.

Q: Has the demand for sawn timber met your expectations and the typical seasonality of the industry in Q4 and early January?
A: Yes, the demand for sawn timber has met expectations and followed the typical seasonality of the industry during Q4.

Q: Have there been any new insights or perspectives regarding the recovery of the construction industry lately?
A: Our view on the recovery of the construction industry remains unchanged: the situation is expected to improve at the earliest in H2/2025.

Q: Are there any foreseeable changes in product prices, and if so, what are the drivers of these changes?
A: No significant changes in the price levels of panel products are anticipated, and any potential changes would be market-driven. As for sawn timber, prices remained at the same level or increased slightly in deals agreed for Q1/2025. Heading into spring, rising raw material costs in other countries and U.S. lumber tariffs may also exert upward pressure on prices.

Q: What are the biggest challenges for Koskisen’s profitability in 2025?
A: Despite a challenging market situation during Q1–Q3/2024, Koskisen has managed to achieve reasonable profitability, taking into account the ramp-up challenges of the new sawmill. We enter 2025 with increased production capacity at the sawmill, making us more resilient if the challenging market situation continues. The price of raw materials is a significant factor, and it may be difficult to pass potential further price increases on to the prices of end products in the current market conditions.

PRODUCTION

Q: How long were the production stoppages in the Sawmill and Panel industries during Christmas?
A: In the Panel Industry, production stoppages varied by product group, lasting from two to three weeks. In the Kore business, production was halted during Christmas. The Sawmill Industry's production stoppage lasted approximately two weeks.

Q: Have layoffs begun in the Panel industry, and are there any layoff plans for Q1?
A: Layoffs in chipboard production have been carried out as needed since last year. In birch plywood production, there has been no need for layoffs so far; we are monitoring market developments.

Q: What is the total scale of the Panel industry’s three-year investment program?
A: At this stage, we have announced the first phase of the three-year program, with a total value of approximately EUR 12 million.

Q: What is the status of the new sawmill? Has the production volume fluctuation range decreased?
A: The ramp-up of the new sawmill has proceeded as expected, and the planned annual production level has been achieved. The current focus is on increasing the production levels of different shifts. There are still some challenges in sawing related to specific log classes. The fluctuation in production volume largely depends on the type of log being processed. The key metric monitored is the average production across all shifts.

Q: How will the challenges related to the handling of logs at the new sawmill be resolved?
A: The challenges will be addressed by adjusting the current line settings. There is no perceived need to replace any equipment.

Q: How has the company prepared for possible strikes?
A: Negotiations at Koskisen are still ongoing but have been conducted in a constructive spirit. If a strike occurs, the short notice period for strikes presents a challenge. The best preparation is to reach a mutually satisfactory agreement.

Q: Does the strike threat cause any movement among customers?
A: Finland’s reputation as a strike-prone country creates additional work at the customer interface. The impacts on customers can be long-term, forcing them to seek alternative suppliers. Compared to many competitor countries, we are in a weaker position.

Q: What is the status of the new log yard? Has it been commissioned?
A: Capacity and test runs are being conducted at the new log yard during weeks 3-4. By the end of January, the log yard will be partially in use, and the transport of logs from the old log yard will end completely by the end of February.

Q: What will happen to the old log yard?
A: The old log yard will remain in use by the Panel Industry for sorting birch logs. Its operations will be optimized in conjunction with the new yard.

WOOD MARKET

Q: Has the variable winter weather in Southern Finland affected harvesting?
A: It has not had an impact. The early winter can be considered typical for Southern Finland.

Q: Were there any surprises in the wood market developments during Q4 compared to your expectations?
A: There were no major surprises in the wood market developments. Supply remained reasonable up until Christmas. Prices stayed relatively stable, although at a very high level.

Q: What is the current state of the wood stock?
A: The wood stock is good and in line with our targets.

For more information, please contact:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
tel. +358 20 553 4563

Koskisen is an international wood processing specialist with more than a century of experience and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. We manufacture high-quality and sustainable circular bioeconomy products that store carbon for decades. The Group’s revenue in 2023 was EUR 271 million. Read more: koskisen.com