Higher product prices boost Nordic results
15 May 2014Timber operations at two Scandinavian wood products groups were buoyed by increased demand and a firming of prices for some sawn timber.
Holmen Timber said general market improvement had boosted business in the first three months of the year. Deliveries were 20% higher than the same period last year at 195,000m3, mainly because of better productivity.
Operating profits were SKr10m (2013: SKr35m loss). A spokesperson said some price increases had been successfully implemented in addition to a beneficial sales mix.
Holmen Skog, the forestry arm of the pulp and paper group, benefited from stronger demand for timber although demand for pulpwood was unchanged. Profits were down to SKr224m (2013: SKr232m), affected by reduced harvesting and the cost of handling storm fellings.
Metsä boosted operating profits, excluding one-off costs, to €105m (2013: €89m). Sales were little changed at €1.25bn. The company said profitability was improved by higher prices and from efficiency programmes.
Recent figures from Metsä and other forest groups reveal investment in Finland's forestry sector is returning to levels last seen before the financial crisis. Last year investment reached almost €1.4bn, analysts said, which is more than double the amount for 2009.
Investments have been strong in the first quarter with Stora Enso and UPM recently announcing new projects and Metsä Group unveiling plans for a €1.5bn pulp mill, the largest investment in Finnish forest industry.
