{"id":87758,"date":"2024-06-20T05:26:01","date_gmt":"2024-06-20T05:26:01","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/kahrs-sees-recovery-in-european-market\/"},"modified":"2025-09-19T09:02:16","modified_gmt":"2025-09-19T09:02:16","slug":"kahrs-sees-recovery-in-european-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/kahrs-sees-recovery-in-european-market\/","title":{"rendered":"K\u00e4hrs sees recovery in European market"},"content":{"rendered":"

K\u00e4hrs reported less significant declines in its European division, despite experiencing weak demand in the residential segment, which has affected sales in the first quarter. However, the company saw an increased order intake in its European operations, with stock-holding distribution channels becoming more balanced and the renovation market starting to recover in certain European markets.<\/span><\/p>\n

Despite a 24% organic decrease in overall sales in the first quarter compared to the same period in 2023, the company remains optimistic. The previous year had seen a higher demand for new construction in Sweden, Finland, and the USA. The firm continues to adapt to the new market conditions by focusing on cash flow, profitability-enhancing measures, and maintaining strong cost awareness.<\/p>\n

K\u00e4hrs has completed its action plan to reduce capacity in its European factories and implemented a cost-savings program. Fixed costs have been reduced by 6% compared to the previous quarter, and net working capital decreased by SEK 113 million in the first quarter. These measures have helped strengthen cash flow by maintaining prices and lowering stock levels in a challenging market.<\/p>\n

The company continues to focus on customer and market optimization, launching new products across all main categories and developing a new platform for the North American market. A new digital interface has been introduced to enhance customer experience and attract more customers. The firm has also strengthened its sales management team to further develop its position in growing markets.<\/p>\n

In response to Russia's attack on Ukraine, the company has been negotiating the sale of its Russian operations. After freezing all financial flows and isolating the Russian business, the company is now in the process of divesting the business. The sale will result in a write-down of approximately SEK 65 million in the second quarter.<\/p>\n

Despite the challenging market conditions, the company sees opportunities for improvement in the residential segment in the second half of 2024. It expects interest rates to come down, which, combined with increasing housing transactions at higher prices, will boost demand for high-quality flooring solutions. The renovation market in the USA remains cautious due to high interest rates, but demand is expected to improve as interest rates decrease.<\/p>\n

The company anticipates continued good demand in the commercial segment, particularly for public buildings used for healthcare, education, correctional services, and defense. However, these effects will primarily be seen towards the end of 2024 and beyond. The long-term outlook remains positive due to housing shortages in net immigration regions and major renovation needs driving growth alongside the green transition.<\/p>","protected":false},"excerpt":{"rendered":"

K\u00e4hrs reported less significant declines in its European division, despite experiencing weak demand in the residential segment, which has affected sales in the first quarter. However, the company saw an increased order intake in its European operations, with stock-holding distribution … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-87758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nK\u00e4hrs sees recovery in European market - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/kahrs-sees-recovery-in-european-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"K\u00e4hrs sees recovery in European market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"K\u00e4hrs reported less significant declines in its European division, despite experiencing weak demand in the residential segment, which has affected sales in the first quarter. 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