Sveaskog’s operating profit from continuing operations amounted to SEK 848 million ($133 million) in 2012

Jan 30, 2013. /Lesprom Network/. Sveaskog’s net sales for 2012 totalled SEK 6,307 million ($985 million) and operating profit from continuing operations was SEK 848 million ($133 million). Delivery volumes were at the same level as in the previous year, as the company said in a press release received by Lesprom Network. “2012 was a tough year for the Swedish forest industry, our customers. The year was characterised by a further weakening of the economy. The price of sawn products fell at the same time as the Swedish krona strengthened. Price levels for wood raw material also fell,” comments Sveaskog’s President and CEO, Per-Olof Wedin. “Despite the weak macroeconomic development in 2012, Sveaskog managed the year relatively well with an operating profit from continuing operations of SEK 848 million ($133 million). Sales of wood raw material were on a par with the previous year and totalled 10.7 million cubic metres. Deliveries from own forest increased by 5 %. Sales of sawlogs increased by 6% while sales of pulpwood and chips decreased by 2%. The market situation in 2013 is hard to assess,” says Wedin. Annual operating profit from continuing operations amounted to SEK 848 million ($133 million). The decrease is due to lower average prices, processing costs after the storm Dagmar and the fact that earning in the previous year included insurance compensation related to the storm Gudrun. Earnings were positively affected by a higher volume of timber from the company’s own forests and a larger proportion of sawlogs in deliveries. Profit for the year amounted to SEK 2,155 million ($337 million). The improvement is mainly due to changes in corporate tax rates with a positive earnings impact of SEK 1,328 million ($208 million). Net sales totalled SEK 1,585 million ($248 million) during the 4Q, a decrease of 11% compared with the same period in 2011. The change is explained by 13% lower average prices. Delivery volumes were largely unchanged. 4Q operating profit from continuing operations decreased to SEK 261 million ($41 million) mainly due to lower timber prices. Profit for the 4Q amounted to SEK 1,554 million ($243 million). The change is due to a changed corporate tax rate. Sveaskog is Sweden’s leading forest company. The company sells sawlogs, pulpwood and biofuel.