The Swedish forestry group reported third-quarter operating profits of SKr590m, compared to SKr164m a year ago. Sales for the first three quarters of 2006 were SKr11.89bn, up from SKr11.81bn in 2005, while operating profits rose to SKr1.18bn from SKr596m.
The group’s sawn timber net sales for the first three quarters rose 7% to SKr2.23bn and operating profits were up 125% to SKr205m.
Södra said the sawn timber business climate had been strengthened by the ongoing building boom in Europe, with the market characterised by restricted production rates due to raw material shortages.
“Redwood and whitewood are now both very strong,” it said. “We believe price increases will continue, primarily for whitewood products that haven’t shown as strong price development as redwood.”
Gapro, part of Södra, reported a 29% sales growth for interior wood products to SKr524m, while operating profit rose by 10% to SKr21m,
Södra said felling of standing forest has recommenced following a 19-month break after the hurricane. But its members have been hit hard by a widespread bark beetle attack.
The group called for the entire forest industry to back a joint strategy next year to fight the beetle.
