Södra Wood increases profits24 July 2017
Södra’s timber division recorded a sharp profits jump in the second quarter to SKr50m compared to a year ago.
The Swedish sawmiller’s performance (compared to a SKr204m loss a year ago) was mainly due to improved earnings for sawn timber.
In addition, the second quarter of 2016 was impacted by a non-recurring cost of SKr204m related to the restructuring of Södra Wood’s sawmill operations.
Group-wide Södra’s operating profit totalled SKr464m for the second quarter. The trend was boosted by favourable demand for Södra’s products, higher prices and internal operational improvements.
“The overall forest economy remains strong, which is to Södra’s advantage,” said Lars Idermark, president and CEO.
“Higher prices for both market pulp and sawn timber contributed to a strong quarter for Södra. A firmer customer and market orientation is also yielding results.
“In addition, the expansion investments at our pulp mills and the restructuring process in the sawmill operations had a positive impact on operating profit.”