Sveaskog's operating profit for the period January-September 2019 amounted to SEK 1,133 million ($116.8 million), an increase of 10% compared with the corresponding period 2018. The operating profit for the 3Q 2019 individually was also better and amounted to SEK 301 million ($31 million), as the company said in the press release received by Lesprom Network.
Net sales, which include both deliveries from own forest and externally procured forest raw material, increased by 6% to SEK 5,396 million ($556 million). Prices increased by an average of 9%, while total delivery volumes decreased by 4%. Sales from sales of forest plants have increased.
Profit during the period January-September decreased by 19% and amounted to SEK 1,286 million ($132.6 million), corresponding to SEK 10.86 per share ($1.1). The decrease is largely attributable to changed tax rules that had a positive impact on earnings of SEK 477 million ($49.2 million) last year. The effect was of a disposable nature and had no cash flow effect.
Sveaskog's President and CEO Hannele Arvonen said: “The improvement in earnings during the year is mainly due to higher prices for our products compared to the corresponding period last year, which has improved the margins for both deliveries from own forest and for externally procured forest raw material. However, delivery volumes are lower both overall and from our own forest. The costs of forest and nature conservation have increased mainly as a result of planned measures. We also have slightly higher logging costs, an effect of increased competition for logging resources in combination with logging of storm and insect-damaged forests.”
Sveaskog is Sweden's largest forest owner and sells timber, pulpwood and biofuel.