Södra’s timber division returned to profit in 2009, recording an operating result of SKr119m (2008: SKr24m loss).

The company said the division benefited from gradual price increases since the second quarter and, following retooling of mills, was essentially able to operate at full capacity.

Södra’s overall operating profits were SKr593m, down from SKr809m in 2008. The company said strong productivity development and a positive effect from the implementation of “employee suggestions” dampened the negative effects of the recession.

From February 1, the company implemented a list price increase of SKr 75/m³ (FUB) for spruce saw logs and SKr25 for pine.

“There is strong demand for wood raw materials and we have a high level of activity in our harvesting,” said forestry director Urban Eriksson.

“We have a good supply of sawlogs for the spring but need to top up our final harvesting inventory prior to summer and autumn deliveries.

“Meanwhile, we are simplifying our offer by moving to a common quality class for all spruce sawlogs on new contracts signed after February 1.”