Holmen timber profits up despite weaker selling prices

17 May 2019

Swedish forest products producer Holmen has reported improved operating profits in Q1 within its wood products division.

The company's wood products division posted Q1 operating profits of SKr54m (2017 Q1: SKr38m) due to gradual price increases in the previous year and increased production. Profit was up by SKr3m compared with the fourth quarter of 2018.

Demand for wood products in Europe was good in Q1 with deliveries increasing but selling prices decreased slightly owing to high supply.

The division’s operating profit for 2018 was SKr246m and production was 873,000m3.

Investments to raise the Braviken sawmill production to 600,000m3 by spring 2020 are continuing.