In the 2Q 2019, Södra’s consolidated net sales declined 6% to SEK 6,199 million, with operating profit of SEK 861 million ($91.6 million). The operating margin was 14%, as the company says in the press release received by Lesprom Network.
“The favourable forest economy of recent years is about to subside in line with the slowdown in global economic growth. Nevertheless, Södra performed well in the 2Q. However, the economic slowdown will lead to a lower quarterly result for the second half-year compared with the year-earlier period,” said Lars Idermark, President and CEO. “All business areas delivered favourable results. As expected, prices for the company’s core products – market pulp and sawn timber – were revised downwards, but remained at high levels during the quarter.”
Sales for the first half-year amounted to SEK 12,517 million, up by just over 1%, with operating profit of SEK 2,009 million. The operating margin was 16%. Return on capital employed was 19% and the equity ratio remained strong at 58%.
