Holmen’s operating profit for January–September 2019 was SEK 1 758 million ($183 million), compared to SEK 1 862 million ($194 million) in January–September 2018. There was a negative SEK 210 million ($21.9 million) impact from paperboard maintenance shutdowns, compared with SEK 60 million ($6.25 million) in 2018. Higher wood costs were offset by better selling prices, as the company said in the press release received by Lesprom Network.
Operating profit in the 3Q 2019 totalled SEK 541 million ($56.3 million), compared with SEK 574 million ($59.8 million) in the 2Q 2019. A significant maintenance shutdown had a SEK 130 million ($13.5 million) impact on profit.
Henrik Sjölund, President and CEO, comments: “The supply of forest raw material in southern Sweden is high as a result of the large harvest owing to measures to address a spruce bark beetle infestation. The market balance in other parts of Sweden has also been affected, reducing Swedish imports from the Baltic States. Following price increases in 2018, profit from our Forest business has stabilised at a higher level and was SEK 298 million ($31 million) for the 3Q. Although there is currently plenty of raw material available, a growing forest industry will consume more than can be sustainably harvested in Sweden. The transition to a bio-based economy implies that competition for raw material will remain significant, which benefits Holmen as a large forest owner, and also underlines the importance of having control over raw material supply for our own production.”
Holmen is a forest industry group that manufactures paperboard, paper and wood products and runs forestry and energy production operations.