Swedish forest products manufacturer Holmen, which has reported a H1 SEK20m operating profit in its wood products division, is adjusting timber production in southern Sweden due to log prices dynamics in the country.
Holmen’s CEO Henrik Sjölund, reporting in the Group’s latest financial update, highlighted the situation with varying log prices across Sweden. However, he said with efficient sawmills and processing capacity, the Group was in a good position for when the construction cycle turns.
“Despite significant overcapacity in the forest industry and high competition for wood raw material, we were able to maintain a good level of profit in Q2, SEK807m [Group-wide], thanks to our integrated business model,” said Henrik Sjölund, President and CEO.
Demand for wood products remained weak in Q2, but prices increased seasonally. Wood product deliveries for January-June amounted to 671,000m3 (2024 H1: 698,000m3). Deliveries decreased by 5% in Q2. The production rate has been adapted to the wood shortage in southern Sweden.
H1 operating profit in the wood products division amounted to SEK20m (2024 H1: SEK20m). Higher selling prices had a positive impact on earnings, but the effect was offset by increased costs for logs and a longer rebuild shutdown at Iggesund Sawmill.
Q2 operating profit was SEK19m higher than Q1, 2025. Q1 earnings had been reduced by SEK30m as a result of the rebuild shutdown.
H1 divisional sales reached SEK2.162bn (2024 H1: SEK2.042bn).
