"2014 was a strong year for Södra and it feels satisfying to report operating profit that improved to SEK 1.9 billion ($223 million). We are well positioned for continued investment in building an even stronger and more successful Södra," says CEO Lars Idermark.
Operating profit for the last four months of 2014 totalled SEK 504 million ($59 million).
Net sales for 2014 rose 5% to SEK 17.4 billion ($2 billion). Profit before tax increased to SEK 1,460 million ($171 million). Earnings in 2013 were charged with restructuring costs of SEK 817 million ($95.8 million) for the closure of Södra Cell Tofte AS.
Return on capital employed was 13% (neg.) and the operating margin 9%. The equity ratio was 61% at year-end, which means that Södra has achieved all of its financial objectives.
In 2014, Södra embarked on a period of heavy investment that will continue for several years to come. The decision to date is to invest approximately SEK 5 billion ($586 million) in the three pulp mills, including more than SEK 4 billion ($469 million) in the mill at Värö outside Varberg.
"Our aim is to create long-term, profitable growth for the Södra Group. We believe that the forest industry plays a key role in achieving a sustainable bioeconomy, and we have the courage to lead the way," says Lars Idermark.
The Board proposes to the Annual General Meeting that a profit of SEK 553 million ($65 million) be distributed to members, comprising a dividend of 6% on contributed capital, totalling SEK 170 million ($20 million), a dividend of 8% on wood deliveries, totalling SEK 323 million ($38 million), and a bonus issue of SEK 60 million ($7 million).
