Sodra posts strong result in declining market19 July 2019
The lower price for sawn timber has impacted Sodra Wood’s half-year financial performance.
Sodra’s wood division recorded an operating profit of SKr118m (2018: SKr201m) for the first half of 2019. Sales for Q2 amounted to SKr1.59bn (2018: SKr1.51bn).
“The favourable forest economy of recent years is about to subside in line with the slowdown in global economic growth,” said Lars Idermark, Sodra president and CEO.
He said the economic slowdown will lead to a lower quarterly result for the second half-year compared with the year-earlier period.
“All business areas delivered favourable results,” he added. “As expected, prices for the company’s core products – market pulp and sawn timber – were revised downwards but remained at high levels during the quarter.”
Increased processing is the next stage of the strategy for Sodra Wood and constitutes a component of strengthening long-term group profitability. The investment in cross-laminated timber (CLT) production is progressing as planned, with CLT manufacturing having started in May.