Södra reported a sustained strong operating profit of SEK 1,277 million ($142 million) for the 3Q 2018. Net sales for the 3Q rose 22% to SEK 5,826 million ($647 million), compared with the year-earlier period, and the operating margin improved to 22%.

Lumber

Södra's 3Q net sales rose 22%

Södra reported a sustained strong operating profit of SEK 1,277 million ($142 million) for the 3Q 2018. Net sales for the 3Q rose 22% to SEK 5,826 million ($647 million), compared with the year-earlier period, and the operating margin improved to 22%, as the company said in the press release received by Lesprom Network.

Net sales amounted to SEK 18,168 million ($2 billion) for the first nine months of the year. Operating profit totalled SEK 3,533 million ($392 million) – a very strong nine-month figure. Return on capital employed rose to 28%. A strong cash flow and healthy liquidity have significantly strengthened Södra’s financial situation. The equity ratio rose to 59%.

“In the 3Q, profit was very satisfactory, especially in light of the challenges for timber sourcing and production caused by the summer’s extreme weather conditions,” said Lars Idermark, President and CEO.

“The extensive investment programme and restructuring over the past few years were timely and Södra’s production facilities are now more competitive. Demand for paper pulp remained strong and we see no signs of a weakening in the medium term. Demand for sawn and processed wood products was also favourable and is expected to remain strong for some time yet,” said Lars Idermark.