Södra has reported a profit after financial items of SKr573m (2010: SKr1.08bn).
The company’s net sales were marginally higher at SKr9.85bn (2010: SKr9.77bn).
Södra said the deviation was mainly due to 15% higher wood costs that affected earnings negatively by SKr624m.
Sodra group president Leif Broden said that an upturn in new construction was taking a long time to materialise in both the US and Europe, while there had been a discernible weakening in the vital renovation sector in Europe.
“New construction activity remains low in several key markets of Södra Timber,” he said. “The renovation sector is somewhat better.”
Södra said profitability of Södra Timber was deeply unsatisfactory, but the assessment was for a gradual improvement in the market. ?
The investment in a new sawmill in Värö with a capacity of 750,000m³ is in the commissioning phase.