Posted Juli 19, 2017
Södra's operating profit totalled SEK 464 million ($56 million) for the 2Q 2017. The trend was boosted by favourable demand for Södra’s products, higher prices and internal operational improvements, as the company said in the press release received by Lesprom Network.
"The overall forest economy remains strong, which is to Södra’s advantage. Higher prices for both market pulp and sawn timber contributed to a strong quarter for Södra. A firmer customer and market orientation is also yielding results. In addition, the expansion investments at our pulp mills and the restructuring process in the sawmill operations had a positive impact on operating profit", said Lars Idermark, President and CEO.
"All business areas reported higher year-on-year operating profit. Efforts to increase our strength and focus, based on Södra’s new strategic direction, will continue unabated", said Lars Idermark.
Consolidated net sales amounted to SEK 5,244 million ($633 million) for the 2Q, up 6%, and the operating margin increased to 9%.
Sales for the first half-year amounted to SEK 10,342 million ($1.2 billion), the operating profit totalled SEK 915 million ($110.5 million) and the operating margin was 9%. Return on capital employed was 11% and equity ratio was 55%.
Founded in 1938, Södra is Sweden’s largest forest-owner association, with more than 50,000 forest owners as its members. Södra is also an international forest industry Group, with operations based on processing its members’ forest products.