Södra Wood records SKr302m annual operating loss
20 February 2017Södra’s wood division has recorded a SKr302m operating loss for the full year 2016 due mainly due to non-recurring costs relating to the restructuring of the division.
Group-wide across all business divisions, the company recorded an operating profit of SKr1.05bn.
The Södra Wood division recorded SKr6.09bn net sales for the full year 2016. The SKr302m annual operating loss included a SKr204m cost associated with the restructuring of Södra Wood.
However, operating profit for the final four month period of 2016 showed a SKr14m operating profit (2015: SKr8m).
It said after initial price pressure, the price trend for sawn timber continued to improve during the year, while production volumes for the Swedish sawmills decreased 9% to 1.8 million m³.
The profitability improvement measures for Södra Wood remain “firm” and are continuing as planned.
“2016 was a year of transition for Södra, with major changes due to robust investment and restructuring but also lower prices for our finished goods,” said Lars Idermark, president and CEO.
“Södra’s efforts to create a stronger company in a more global and competitive market are continuing,” he added.
“The extensive investments of recent years are among the largest in Södra’s history, and we are strengthening our customer offering and securing markets for our members’ forest products.”
