Sveaskog’s 2Q 2018 net sales rose to SEK 1,918 million ($216 million), an increase of 13%. Sales of wood raw material amounted to 2.9 million cubic metres, as the company said in the press release received by Lesprom Network.
Operating profit from continuing operations increased by 12% and amounted to SEK 382 million ($43 million). The improvement in earnings is mainly an effect of higher prices. Difficult soil scarification and planting conditions led to a lower level of silvicultural activity. This had a negative effect on external sales of seeds and seedlings.
Profit for the 2Q 2018 increased by 108% and amounted to SEK 914 million ($103 million). New corporate tax rules resulted in lower deferred tax and therefore a lower tax expense which improved earnings by SEK 477 million ($53.7 million).
1H 2018 net sales, which comprise both deliveries from Sveaskog’s own forests and externally procured wood raw material, increased by 8% to SEK 3,567 million ($402 million). Sales of wood raw material amounted to 5.8 million cubic metres.
Operating profit from continuing operations increased by 7% and amounted to SEK 775 million ($87.3 million). Higher prices were offset to some extent by a 7% decrease in delivery volumes from own forests. The main cause was the extremely snowy winter and record-dry early summer which had a negative impact on felling, soil scarification, planting and external sales of seedlings and seed. This has led to a delivery mix with a lower proportion of deliveries from own forests. On an annual basis, the delivery mix is expected to normalize.
Profit for the first six months of 2018 increased by 67% and amounted to SEK 1,301 million ($146 million).
Sveaskog is Sweden’s leading forest company and sells sawlogs, pulpwood, biofuel, forest seedlings and silvicultural services.
