IFI Magazine Feb March 2019 International Forest Industries Magazine Feb March | Page 15

LOGGING & BIOMASS NEWS
Best year ever for Logset
In 2018, Logset Oy’s turnover grew
to a record level of 40.128 million
euros (2017: 30.922 million euros)
and the operating profit to 1,671
million euros (2017: 0,935 million
euros).
During the past year, the
demand for Logset products
remained high in Europe. The
strongest growth, however, came
from the Russian and South
American markets.
The demand for harvester
heads exceeded all expectations,
and the interest towards the hybrid
harvester continued to grow.
Forwarders remained the
foundation of the sales. In 2018,
Logset launched the first service
products that increased the service
turnover. At the end of 2018, the
value of the order book reached a
record 19,8 million euros (2017: 7,3
million euros).
In 2018, Logset not only focused
on growth, but also on developing
its operational activity. Purchasing
was streamlined, which lowered
the share of material costs of total
turnover compared to the previous
financial year.
The stock turnover rate of
materials, spare parts and second-
hand machines was improved
significantly, and the stock value in
euro decreased from the previous
year, despite the strong growth of
financial turnover. A write-down
was made in the material stock,
and the stock value of second-
hand machines was adjusted to
correspond to a fair market price
with a new valuation method.
Warranty costs and campaign
overall costs were reduced due
to better quality control in the
production, and improved quality
of the products.
The share of direct labour costs
of the total turnover developed
in an unfavourable way, even
though the number of sick leaves
and occupational accidents was
diminished. The whole forest
machine industry suffered from
poor availability of components,
and it also affected Logset.
Despite the strong growth and
problems with parts availability,
the company managed to deliver
the machines within a reasonable
timetable.
In 2018, Logset product
development focused on the new
Stage 5 products that meet the
tightened emission regulations,
the Smooth Ride cabin suspension,
on improving the quality, and on
developing new products to be
launched in 2019.
At the end of 2018, Logset
established a subsidiary named
Logset Inc. in Canada. The new
office will offer sales and technical
support to Logset dealers and
customers based in North and
South America.
In 2018, Logset’s credit rating
was raised to class A.
“Logset had a fantastic year.
We advanced as planned in nearly
all areas, and the results are plain
to see. Thanks to the enhanced
operational activity, a record order
intake, and the continued high
demand at the beginning of this
year, the company is in a great
shape for 2019” says Managing
Director Jussi Malmi.
Actions to improve financial
and operational performance will
continue in 2019. In addition, the
capacity of the factory will be
increased. The new products and
service solutions to be launched
in 2019 are expected to further
strengthen Logset’s market
position.
International Forest Industries | FEBRUARY / MARCH 2019 13