Södra’s net sales in the 3Q 2017 increased 8% to SEK 4,763 million ($581 million). Operating profit increased 5% to SEK 421 million ($51.3 million). Operating margin was 9%, as the company said in the press release received by Lesprom Network.
The strong results were due, inter alia, to higher prices and stable demand for both paper pulp and sawn timber. During the quarter, decisions were also taken about future-oriented initiatives for increased wood processing and biofuel production.
For the January to September period, net sales amounted to SEK 15,105 million ($1.8 billion), operating profit to SEK 1,336 million ($1.6 billion) and operating margin to 9%. Return on capital employed was 11% and equity ratio was 55%.
“Market conditions for forest industry products remained favourable, and higher prices for both market pulp and sawn timber contributed to a strong result. Production levels remained stable at all of Södra’s facilities during the quarter, while Södra is in its most extensive investment phase for decades,” said Lars Idermark, President and CEO.
“We also made decisions about important future initiatives during the period. These relate partly to increased wood processing in cross-laminated timber, and partly to the production of biofuel based on the by-product methanol from the pulp industry,” said Lars Idermark, President and CEO.
