Good start to 2015 for the Södra Group

Södra’s operating profit for the first four months of the year amounted to SEK 941 million (503). Sales increased 7 percent to SEK 6,243 million and the operating margin improved to 15 percent (9).

“The year started well for Södra, with healthy sales and strong results. The market has been stable, prices relatively good and the currency situation favourable. Production has also been efficient and we are seeing the results of continued rationalisation,” commented CEO Lars Idermark.

The wood supply in southern Sweden was in line with the preceding year, but considerably higher than the average for the past five years. The supply of wood to Södra’s mills functioned effectively. Deliveries of sawn timber showed a positive trend. In moulding and panelling, competition from manufacturers in the Baltic countries remained intense. Demand for pulp remained stable, but the currency trend with a strengthened USD against the EUR led to a slightly lower world market price for softwood sulphate pulp (NBSK).

The earnings improvement for the first four-month period is the result of healthy demand for Södra’s products and services and a favourable currency situation. Profit for the Södra Cell business area increased to SEK 968 million (517), while profit for Södra Wood amounted to SEK 22 million (21) and profit for Södra Skog to SEK 41 million (51).

In the picture: Lars Idermark, CEO of Södra.