Sodra Wood records operating loss in May-August
22 September 2015Sodra’s sawmilling division recorded an operating loss of SKr20m in May-August mainly due to lower prices for finished goods and higher prices for raw materials.
The result compares to a SKr73m operating profit in the same period a year ago. Sales were marginally up to SKr1.93bn this year.
Net sales for the Sodra Wood division for the first eight months of the year were SKr3.91bn, with an operating profit of SKr2m (2014: SKr94m).
Sodra explained that the price of construction timber declined in Europe during May-August, due to the high production rate of sawmills.
“Production levelled off in Sweden during the second four-month period, while production rates declined in Finland and Central Europe,” it said.
“Raw material supplies to sawmills in southern Sweden were favourable. In 2015, markets in North Africa and the Middle East have been weak, particularly in Egypt, with high inventories and tougher regulations for the management of foreign currency in banking systems.”
The market in China weakened due to major concerns about the Chinese economy.
Södra’s sawn timber production increased to 572,000m3 (2014: 534,000m3) in May-August, mainly due to higher production in the Värö sawmill.
