In the 1Q 2019, Södra’s consolidated net sales rose 11% to SEK 6,318 million and operating profit totalled SEK 1,148 million, up 22% compared with the year-earlier period. The operating margin improved to 18% and return on capital employed was 22%, as the company said in the press release received by Lesprom Network.
“Despite signs of a slowing global economy, Södra’s 1Q result was better than expected,” said Lars Idermark, President and CEO. “Prices for the company’s core products – market pulp and sawn timber – remained at a favourable level throughout the quarter, even though a certain price decrease was foreseeable.”
In the Södra Skog business area, operating profit totalled SEK 56 million ($6 million) for the period. The result was positively impacted by both higher volumes and improved margins.
In the Södra Wood business area, operating profit totalled SEK 147 million ($15.6 million) for the 1Q 2019. The result reflects a continued high price level for sawn timber which, in combination with restructuring effects in Södra Wood, had a positive impact on the earnings trend. Sales amounted to SEK 1,498 million.
In the Södra Cell business area, operating profit totalled SEK 1,112 million for the 1Q. The earnings trend was mainly attributable to a continued high price level, a favourable USD exchange rate and production facilities that delivered an excellent performance. Sales amounted to SEK 3,501 million.
