SCA has announced a 21% rise in group profit before tax for 2007, but said the market for solid wood products was weakening.

In an anouncement today, SCA said it earned SKr8,237 for the full year from sales of SKr105,913.

SCA said the market for timber remained strong but the sector was characterised by high stock levels despite production cutbacks, leading to price pressure for lower grades.

Solid wood production totalled 1.65 million m3 in 2007, a 5% reduction from 2006.

Higher prices were offset by negative exchange rate fluctuations and higher raw material costs.

Operating profits in the forest products division declined 10%, due to lower earnings from sawmill operations and long-term shutdowns in pulp productions.