Swedish forest products manufacturer Holmen has posted half-year profits after tax of SKr395m, down from SKr726m a year ago.

The company, which has timber, paper and board operations, saw turnover grow slightly to SKr9.7bn.

Its Iggesund and Holmen Timber operations saw lower results, partly because of maintenance and rebuilding stops.

Holmen Timber’s turnover for the period was SKr273m, down from SKr313m a year ago. Operating profits were down from SKr74m to SKr21m, due to lower prices and deliveries.

“The market situation for sawn timber was weak with further falls in prices during the second quarter of 2008,” Holmen said.

The second quarter was particularly tough with the division recording a loss of SKr2m, compared with profits of SKr23m during the first quarter.

However, Holmen’s sawmill project at Braviken in Norrköping is continuing to plan.