Per-Olov Wedin, President and CEO, said: “The improvement in earnings despite lower price levels is due to higher deliveries from the company’s own forests and lower production costs. The latter was achieved through improved efficiency and the fact that the previous year included additional costs related to the storm Dagmar.”
Sveaskog’s sales of wood raw material in the first half of 2013 totalled 5.9 million cubic metres (m3sub). Sales of pulpwood and chips increased by over 8% while sales of the rest of the assortment were largely unchanged.
The strong Swedish krona remains a threat to the Swedish wood products industry. Swedish sawmill production is now at its lowest since the 1990s. Swedish wood products deliveries decreased in the first months of the year. In addition to the impact of the weak economic situation, pulp and paper mills are affected by the structural changes currently taking place in the industry. Market development is difficult to assess.
Net sales for six months January–June amounted to SEK 3,310 million ($508 million). Prices fell by an average of 10% while delivery volumes rose 4% compared with the first half of the previous year.
Operating profit from continuing operations in 1H 2013 amounted to SEK 544 million ($83.5 million). The improved result despite lower price levels is due to higher deliveries from the company’s own forests and lower production costs. Change in value of forest assets amounted to SEK 312 million ($47.9million).
Operating profit for six months January–June amounted to SEK 896 million ($137.5 million). Profit for the first half of the year amounted to SEK 596 million ($91.5 million).
Cash flow from operating activities before change in value of working capital amounted to SEK 281 million ($43 million).
2Q 2013 net sales amounted to SEK 1,727 million ($265 million). Prices fell by an average of 9% while delivery volumes rose 5% compared with the 2Q in the previous year.
Operating profit from continuing operations in 2Q amounted to SEK 273 million ($42 million). The improved result despite lower price levels is due to higher deliveries from the company’s own forests and lower production costs. Change in value of forest assets amounted to SEK 150 million ($23 million).
2Q operating profit amounted to SEK 462 million ($71 million). Profit for the 2Q amounted to SEK 314 million ($48.2 million).
Sveaskog is Sweden’s leading forest company. The company sells sawlogs, pulpwood and biofuel.
