Holmen Timber has reported an operating loss of SKr136m for 2011 (2010: SKr20m profit) as the company faced high raw material costs and a weak market with pressure on prices.

Losses deepened in the fourth quarter to SKr40m from SKr30m in the third quarter, due to lower prices, increased staff costs due to seasonal factors and the poor market.

Net full year sales rose to SKr875m (2010: SKr586m), while production nearly doubled to 560,000m³ (2010: 285,000m³).

Deliveries totalled 487,000m³, of which 190,000m³ consisted of spruce from the new mill in Braviken, where annual production reached 257,000m³.

“Because of weakness in the market, this production increased more slowly than had initially been planned,” said Holmen.

Across all product groups, the Holmen Group’s operating profits increased to SKr1.9bn (2010: SKr1.3bn) due to a good performance in the core printing paper and paperboard operations.