Norra Timber records positive 2021 results21 March 2022
Swedish sawmiller Norra Timber says it recorded a sensational 2021, recording operating profits of SEK1.04bn.
The results compare to a loss of SEK95m in 2020.
Norra Timber is part of the Norra Skog Group which is owned by 27,000 private forest owners in northern Sweden. It has three sawmills and a pole factory.
Norra Skog was formed from the merger between Norrskog and Norra Skogsägarna in 2020.
The company’s operating result in 2020 had been heavily affected by the merger and industrial restructuring costs.
“The benefits of the successful merger are clear to see, and the association’s members can now look forward to a record-breaking share of the profits,” the company said.
“The pandemic that struck only days after the merger was announced did not make things easy for us, but despite the fact most of the work had to be done via video meetings, the association has quickly got onto its own two feet”, says Norra Skog’s CEO, Pär Lärkeryd.
The excellent result in 2021 was largely attributed to price increases created by a market deficit of sawn timber products caused by the pandemic.
Despite the positive results, the company said not everything had gone according to plan during the past year. For instance, despite a high number of contracts, the measured total volume of wood decreased from 3.55 to 3.43 million cubic meters under bark.
This volume reduction was mainly due to an under capacity in felling resources and difficult weather conditions during large parts of the autumn.