Strong first quarter for Södra

Södra said the improvement was mainly attributable to the positive trend for the sawmill operations.

“The extensive restructuring that commenced in 2016 is now beginning to take effect,” it said.

“A positive price trend for sawn timber also contributed. Favourable price levels during the first quarter combined with expected healthy demand in the coming quarters indicate a continued positive trend for Södra Wood.

“Acquisition of the UK company Crown Timber Group Plc in 2016 was successful and the UK market trend has been positive.

“While restructuring measures led to a slight decline in delivery volumes for sawn timber, this was offset by the positive price trend.”

Södra’s Q1 group operating profit across all divisions totalled SKr451m (Q1 2016: SKr249m). The operating margin improved to 9% (Q1 2016: 5%) and return on capital employed to 11% (Q1 2016: 7%).

“Södra’s first quarter was strong with increased net sales, higher earnings and an improved operating margin,” said Lars Idermark, Södra president and CEO.?

“Due to the positive trend we have seen since autumn 2016, the second quarter should also be strong.

“At the same time, our efficiency measures will continue with the aim of further improving profitability. However, there are still a number of geopolitical concerns and our business environment is rapidly changing.”