Posted February 27, 2017
Sveaskog’s 4Q 2016 net sales increased marginally to SEK 1,549 million ($172 million). Total delivery volumes increased by 1% compared with the corresponding period in the previous year while sales prices decreased by an average of 1%, as the company said in the press release received by Lesprom Network.
4Q 2016 operating profit from continuing operations fell by 15% to SEK 309 million ($34.3 million). Delivery volumes from own forests fell by 3% and prices by an average of 2%. In addition, stock impairment losses were recognised in the forest seedling operations with a negative earnings impact of SEK 16 million ($1.8 million).
Profit for the 4Q decreased to SEK 291 million ($32.3 million), mainly attributable to a lower change in recognised fair value of standing timber.
FY 2016 net sales, which comprise both deliveries from Sveaskog’s own forests and purchased wood raw material, decreased by 3% to SEK 5,922 million ($658 million). Total delivery volumes fell by 1% and average prices by 2%.
FY 2016 operating profit from continuing operations decreased by 12% to SEK 1,128 million ($125 million). Delivery volumes from own forests fell by 2% and average prices by 2%. Earnings for the year include a one-time payment from the Swedish Environmental Protection Agency of SEK 60 million ($6.7 million) in conjunction with the establishment of nature reserves.
An impairment loss of SEK 16 million ($1.8 million) has been recognised in the seed and seedling stocks in the forest seedling operations due to increased obsolescence.
Profit for the year decreased to SEK 1,190 million ($132 million), attributable to a lower operating profit from continuing operations and a lower change in recognised fair value of standing timber.
Sveaskog is Sweden’s leading forest company and sells sawlogs, pulpwood, biofuel, forest seedlings and silvicultural services.