Södra reported operating profit of SEK 2,520 million for the first nine months of 2019, compared with SEK 3,533 million for the year-earlier period. Return on capital employed was 16%. Net sales for the January-September period declined 1.4% to SEK 17,908 million, as the company said in the press release received by Lesprom Network.
“Operating profit for the first nine months of the year was satisfactory but was lower for the third quarter than the very strong result in the year-earlier period. But it compares favourably in view of the prevailing situation in terms of economic sentiment, demand and market prices,” said Lars Idermark, President and CEO.
The forest economy continued to weaken in line with the slowing global economy during the year, especially in Södra’s core European markets. Market conditions have gradually deteriorated since the first quarter with sharply reduced prices for Södra’s core products.
In the 3Q, consolidated net sales amounted to SEK 5,391 million, down 8%. Operating profit totalled SEK 512 million, compared with SEK 1,277 million in 2018, representing an operating margin of 9%.
