Södra’s timber division recorded a sharp profits increase in the second quarter of 2017, reaching SEK 50 million, as compared to the same period last year.
The increase for the Swedish sawmiller was mainly due to the improved earnings for sawn timber and, in addition, the Q2/2016 was influenced by a non-recurring cost of SEK 204 million related to the restructuring of Södra Wood’s sawmill operations.
“The overall forest economy remains strong, which is to Södra’s advantage,” said Lars Idermark, president and CEO. “Higher prices for both market pulp and sawn timber contributed to a strong quarter for Södra. A firmer customer and market orientation is also yielding results. In addition, the expansion investments at our pulp mills and the restructuring process in the sawmill operations had a positive impact on operating profit.”
The operating profit for Södra amounted to SEK 464 million for the Q2/2017 and this was boosted by favourable demand for Södra’s products, higher prices and internal operational improvements.