Business is holding its own for many Scandinavian forest products companies which are faring better than their US and Canadian counterparts.

Swedish forestry group Södra reports increased pre-tax profits of SKr562m for the first nine months of 2002, helped by strong sales of sawn timber at home and in the UK and US.

The company, which recorded sales of SKr8,769bn for the period, says there is a “good balance” between supply and demand, with timber prices rising gradually. The production rate for sawn timber products has been at record levels, with the six sawmills producing 653,000m3, helped by high throughput at Mönsteras.

Finnish-based Stora Enso reports third quarter pre-tax profits of €196.8m compared with €154.6m in the previous quarter. But operating profits on timber sales were down 31.2% to €9.7m as production was disrupted by flooding in Central Europe and the fire at Koski Timber Oy’s sawmill.

The company says restricted supply in the short term is keeping the market balance “quite satisfactory” in Europe and Japan, allowing prices to rise slightly. In the US demand remains high but prices are strongly affected by Canadian oversupply, which, if it continues, could limit imports from Europe.

UPM-Kymmene’s overall operating profits were up 28% to €340m in the third quarter, with wood products division sales totalling €358m and operating profit down to €5m. Profitability declined due to higher log costs but sawn timber was in “steady” demand and small price rises have been introduced.

Meanwhile Washington-based Weyerhaeuser saw its third quarter earnings plummet by 86% and blames low wood prices, softwood duties on Canadian imports and merger-related charges. The company reported profits of US$13m compared with US$91m a year ago.

Louisiana-Pacific reports positive operating profits in all business areas despite an 11% drop in OSB prices since last year. Net profits for the third quarter were US$3.3m, compared with a net loss of US$1.7m a year ago.

Uniforêt Inc lost C$14m in its latest quarter compared with a C$12m loss a year ago and blames the lumber surplus and countervailing duties for the rise.

Profits also dropped at Nexfor Inc – it recorded net profits of C$6m against C$10m a year ago. However, sales rose to C$587m from C$518m.