Displaying items by tag: södra

sod logoDue to low global softwood pulp stocks and solid demand, Södra will increase its market price for NBSK in Europe to USD 870, effective from June 1st 2015.

For further information, please contact:
Magnus Björkman, President of Södra Cell International, +46 70 265 75 22
Henrik Wettergren, Sales Director Europe, +46 73 069 70 12

Published in Financial News
Tagged under
Thursday, 21 May 2015 08:55

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).

soft wood pulp sodra“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).

  2015 2014 2014
  Jan-Apr Jan-Apr 1 Jan-31 Dec
Net sales, SEK million 6,243 5,838 17,339
Operating profit before depreciation, amortisation and impairment (EBITDA), SEK million 1,262 832 2,552
Operating profit, SEK million 941 503 1,516
Operating margin, % 15 9 9
Cash flow after investments, SEK million 740 515 267
Return on capital employed, % 22 11 13

For questions, please contact:
Lars Idermark, President and Chief Executive Officer
Telephone: +46 470 894 35

Carina Olson, Chief Financial Officer
Telephone: +46 470 892 62

Annica Gerentz, Senior Vice President Corporate Communications
Telephone: +46 470 894 81

Published in Financial News
Tagged under

sod logoSödra’s Annual General Meeting agreed to distribute SEK 553 million to members and to elect Lena Ek as the Board’s new Chairman. Hans Berggren was elected new Board member.

Approximately 300 people, including 200 delegates, attended Södra’s Annual General Meeting in Växjö Concert House on 19 May. The Meeting resolved to distribute profits of SEK 553 million, comprising dividends of 6 percent on contributed capital (SEK 170 million) and 8 percent on wood deliveries (SEK 324 million), and a bonus issue of 5 percent on paid-up contributed capital as of 31 December 2014 (SEK 60 million). A decision to issue a dividend of 7.7 percent on subordinated debentures, series D, totalling SEK 10 million, was also adopted.

“Södra performed extremely well in 2014, which will also benefit members in the form of a solid dividend totalling SEK 553 million. It is important that our owners feel we have a long-term approach to dividends, and that they receive a return on both their risk capital and their wood deliveries. The profit distribution contributes to the profitability of active forest management and active participation in Södra,” says Christer Segerstéen, who will now step down from his role as Chairman of Södra.

Lena Ek was elected new Chairman and Hans Berggren as new Board member. In addition to Christer Segerstéen, Anders Grennborg and Caroline Sundewall also stepped down from the Board.

Lena Ek was born in 1958, holds a Bachelor of Law with a specialisation in international law and lives in Valdemarsvik, where she also owns forest.  She has worked politically at municipal, county, national and EU levels, and serves on the Board of the Swedish Centre Party as well as the Party’s Executive Committee. She was Minister for the Environment from 2011-2014 under the Swedish Alliance government and since the election in 2014, has been a Member of the Riksdag and Deputy Chair of the Committee on Environment and Agriculture. She served on Södra’s Board from 2000-2010.

Hans Berggren was born in 1956, is an agronomist and lives north of Karlshamn where he also owns forest.  Since 2010, he has served as President of the co-operative association Sveriges Stärkelseproducenter and its subsidiaries Lyckeby Culinar AB, Lyckeby Starch AB and Kockens AB.

The Meeting addressed a total of 17 motions concerning such issues as profit-distribution policies, the development of broader financial advisory services for members and the effects of climate change on forestry.

For more information, please contact:

Lars Idermark, President and CEO, tel: +46 470-894 35
Magnus Berg, Director of Members, Södra, tel: +46 (0)70-52 894 83
Annica Gerentz, Director of Communications, Södra, tel: +46 (0)70-398 42 09

Published in Financial News
Tagged under
Thursday, 21 May 2015 08:36

Gudrun clearing largest carbon sink

Ten years after Cyclone Gudrun, the now reforested felled areas have become a large carbon sink and will remain so for more than 50 years. This has been shown by the development of Södra's property in Toftaholm, one of the worst affected by the storm in 2005, with 130,000 m³sub of wind-felled forest.

GranGoran1

A clearing, where the forest has been harvested or wind-felled, for example, releases CO2. Growing forest, on the other hand - particularly young forest - absorbs CO2. When Gudrun swept over Sweden ten years ago, there were major concerns that the resulting deforestation would become a "carbon bomb" for many years to come. However, due to rapid processing of the storm-damaged timber and ambitious reforestation goals, re-growth has been faster than expected and eight years later, the forest has now begun to absorb more CO2 than it releases. A growing forest helps to reduce climate impact. Due to the vastness of the area that was deforested, which also represents the most fertile soils in Sweden, this is particularly important.

"At the time, there was a fairly distressing discussion on how much carbon would be released. The finger was pointed at poor forest management and it would probably take a long time before new forest began to absorb CO2," says Göran Örlander, Head of Forest Management at Södra.

Johan Bergh, professor at Linnaeus University, has studied the development of Södra's soils and claims that the forest began to absorb more carbon than it releases after replanting eight years ago.

"Measurements of the carbon balance show that while overall emissions of CO2 were about 80 tonnes per hectare, we saw a clear annual variation of absorption/emission after five years, and the forest now absorbs more than it releases. Reforestation has been successful and in the beginning, emissions declined as ground vegetation increased. With a rotation period of about 65 years, this forest will absorb and store large amounts of CO2 for more than 50 years," says Johan Bergh.

The new forest will now be managed with best management practices to reduce storm damage, such as cleaning and thinning performed correctly and in a timely manner. Cleaning and thinning are now carried out at an early stage, and in a way that makes trees grow faster in width to increase their stability, since taller trees are more prone to windthrow. This management approach will also enable earlier harvesting, generating a higher return on forests for forest owners.

"Gudrun gave us invaluable experience and knowledge for the continued development of responsible forestry," says Göran Örlander.

For questions, please contact:
Göran Örlander, Head of Forest Management
tel: +46 470 893 62

Annica Gerentz, Director of Communications
tel: +46 470 894 81

Published in European News
Tagged under

sod logoSödra is to apply for a new permit for expanded production at its sawmill in Mönsterås. A permit has been sought for 800,000 cubic meters. The current permit is for 450,000 cubic meters.

"We have strong confidence in our sawmill in Mönsterås. This permit application is important for the sawmill's future, growth and profitability. On 12 May, a consultation meeting will be held with local residents. The application will subsequently be submitted to the County Council in the early summer," says President of Södra Wood Håkan Svensson.

As a result of production enhancements, the sawmill has now reached the ceiling of the current environmental permit. Södra wants to continue to improve and develop the operation.

"Already now, we have the capacity to process 480,000 cubic metres and in the near future, 500,000-550,000 cubic metres. At that point, new investments will be required. A successive increase will take place, but we are applying for a permit now that will allow for growth," says Håkan Svensson, President of Södra Wood.

Södra is confident in Mönsterås as a sawmill that offers several advantages.

"The sawmill in Mönsterås is a modern facility with an excellent location. This location, next to the pulp mill, provides several integration benefits, for example, the sawmill gets the heat for its dryers from the pulp mill. The sawmill also has access to its own harbour and can quickly ship its goods to the world.  From the perspective of forest ownership, the Mönsterås catchment area is important and we want to prepare to capitalize on the forest owners' increasing growth in the forests," says Håkan Svensson.

The increased production is primarily destined for the UK and US, which are two currently expanding markets, where Mönsterås is already a large player.

"We also foresee large potential in China. We have doubled our volumes to China in the past year and have a positive view of the future," says Håkan Svensson.

For further information, please contact:
Håkan Svensson, President of Södra Wood, tel. +46 (0)457-316 00

Published in European News
Tagged under
Monday, 04 May 2015 08:39

Carina Olson to leave Södra

Carina Olsson 2015Carina Olson, CFO and Director of Purchasing, will step down from her position to assume the role of CFO for Praktikertjänst. The process of recruiting her successor has commenced.

“I have spent 14 fantastic years at Södra, but am now at a stage in my life where I am ready for a change. The role of CFO for Praktikertjänst will be an exciting challenge for me, where I believe my experience from Södra will be extremely useful,” said Carina Olson.

“I, personally, will be very sorry to see Carina leave Södra, because she has so many excellent qualities in her profession and is also a very close associate. At the same time, I would like to congratulate Carina on her new challenge, and wish her the best of luck and prosperity. I will immediately initiate the process of finding her successor,” said Lars Idermark, CEO.

Carina Olson has been employed at Södra since 2001, where she has held various positions in the Group, including CFO of Södra Timber and Södra Cell, HR Director and, since 2011, CFO and Director of Purchasing.

Carina Olson will leave Södra in October 2015.

For further information, please contact:
Carina Olson, CFO and Director of Purchasing
Tel: +46 (0) 470 892 62
Annica Gerentz, Director of Communications
Tel: +46 (0) 470 894 81

Published in European News
Tagged under
Tuesday, 21 April 2015 19:42

Södra raises price of hardwood pulpwood

2015 04 21 194336Södra is replacing the contracting premium for hardwood pulp that has been in place since 10 February with a corresponding price increase of SEK 25 per m3sub effective as of 15 April.

The mild and wet winter, in combination with the clearing of storm-felled wood, have led to a weaker flow of hardwood at the same time as demand for the material is favourable. The price increase applies to hardwood pulp and sawable hardwood.

Södra's offer for hardwood remains strong, providing the basis for a high level of activity at the hardwood mill," says Håkan Larsson, President, Södra Skog.

For further information, please Contact:

Håkan Larsson, President of the Södra Skog business area.
Tfn: +46 (0) 499-159 81

Published in Financial News
Tagged under

2015 04 17 103225Christer Segersteén is resigning from his position as Chairman of Södra after a total of 24 years on the Board. The Nomination Committee has proposed Lena Ek as new Chairman, and Hans Berggren as new Board member.

Christer Segersteén was Vice Chairman for 18 years and Chairman for four. In 2015, he will turn 65.

“I have spent many fun, exciting and challenging years with Södra. Södra is now moving forward, with a new Group strategy under new management. Although I will miss Södra, it’s time for others to take over and it feels satisfying to hand over a company that is stable, profitable and financially sound.”

“The proposals that the Nomination Committee will now present to the AGM will ensure that the Board is composed of appropriate and highly competent members, who also represent renewal. Lena Ek has an extensive background in politics and has served on the Board of Södra for 10 years. Hans Berggren has extensive experience in the industry, as well as in cooperative enterprises. Both are forest owners and members of Södra,” says Nomination Committee Chairman, Tomas Andersson.

Lena Ek has worked politically at municipal, county, national and EU levels, and serves on the Board of the Swedish Centre Party as well as the Party’s Executive Committee. She was Minister for the Environment from 2011-2014 under the Swedish Alliance government and since the election in 2014, has been a Member of the Riksdag and Deputy Chair of the Committee on Environment and Agriculture. Lena Ek has been a member of Södra for many years, and owns forest properties outside Mönsterås where she grew up. She served on Södra’s Board from 2000-2010. She was born in 1958, has a degree in international law, and lives in Valdemarsvik.

“Södra is an important organisation and means a lot to us as members. Whatever forest owners do, they can always turn to Södra, and the value that Södra generates for us as its owners is fantastic. The forest and forest fibre have enormous potential in terms of new products and new markets. It is an honour to be recommended by the Nomination Committee,” said Lena Ek.

The proposed new Board member is Hans Berggren, President of the co-operative association Sveriges Stärkelseproducenter and its three subsidiaries Lyckeby Culinar AB, Lyckeby Starch AB and Kockens AB. The Group generates sales of SEK 1.2 billion and sells products to the paper and food industries. Hans Berggren was born in 1956, is an agronomist and lives outside Karlshamn.

Anders Grennborg, 62, is resigning from the Board after 13 years, and Caroline Sundewall after five years.

The proposed re-elections to the Board are Marie Hallén and Ola Hildingsson.

Södra’s Annual General Meeting will be held on 19 May in Växjö.

For questions, please contact:

Tomas Andersson, Chairman of the Nomination Committee, tel: +46 (0)70-65 340 70

Christer Segerstéen, Chairman, tel: +46 (0)70-637 98 20

Annica Gerentz, Director of Communications at Södra, tel: +46 (0)70-398 42 09

Read the interview with Södra’s outgoing Chairman at www.sodra.com

Published in European News
Tagged under
Wednesday, 18 March 2015 13:19

Södra and Statkraft launch fuel company

sod logoSödra and Statkraft have signed a cooperation agreement to start a jointly-owned company for the future production of biofuel at the former Tofte pulp mill. The company will be named Silva Green Fuel AS, and will be 49-percent owned by Södra and 51-percent owned by Statkraft. Biofuel will play an important part in the drive to achieve national and international targets for reducing climate emissions from the transportation sector.

The company's first task is to find a cost-effective technology for profitable production of second generation biofuels based on forestry raw materials. A future commitment depends on whether the authorities facilitate the increased use of biofuels through tax changes and other attractive incentives.

"Statkraft views forest-based biofuel as a potential new growth area in renewable energy. I think that the collaboration with Södra constitutes a solid basis for developing a commercially-viable and profitable project," said Christian Rynning-Tønnesen, CEO of Statkraft.

"Södra is monitoring closely the technology developments and the business opportunities presented by the utilisation of forest raw materials for industrial production of climate-neutral fuels. We have also enjoyed good collaboration with Statkraft in the past and look forward to combining the two companies' expertise and experience in this project," added Södra's CEO Lars Idermark.

Statkraft has taken over all the shares in Södra Cell Tofte AS, which owns the former pulp mill site at Tofte. The site is favourably situated for a future venture into the area of biofuel: The location already has an established infrastructure to handle large volumes of wood and it is located centrally in eastern Norway, with an excellent deep-water harbour.

Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy.  The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3,700 employees in more than 20 countries.

Södra is a group with extensive forestry operations and a leading producer of paper pulp, sawn timber and bioenergy. The business is owned by 50,000 forest owners in southern Sweden, has 3,500 employees and sales of SEK 17 billion.

For further information, please contact:

Knut Fjerdingstad, Head of Information, Statkraft,
Tel: + 47 901 86 310.

Christen Grønvold-Hansen, President of Södra Cell Tofte AS
Tel: + 46 70 646 33 37.

Annica Gerentz, Director of Communications, Södra,
Tel: + 46 470 894 81

 

Published in European News
Tagged under
Thursday, 12 February 2015 07:53

Strong year for Södra

sod logoSödra reported an operating profit of SEK 1,516 million (loss: 417) for 2014. The strong results were due to positive market conditions, healthy prices for finished goods, a favourable currency situation and completed efficiency enhancements. The Board proposes to the Annual General Meeting that profits of SEK 553 million (281) be distributed to Södra’s members.

"2014 was a strong year for Södra and it feels satisfying to report operating profit that improved to SEK 1.9 billion. We are well positioned for continued investment in building an even stronger and more successful Södra," says CEO Lars Idermark.

2015 02 12 082029Operating profit for the last four months of 2014 totalled SEK 504 million (369).

Net sales for 2014 rose 5 percent to SEK 17.4 billion (16.6). Profit before tax increased to SEK 1,460 million (loss: 450). Earnings in 2013 were charged with restructuring costs of SEK 817 million for the closure of Södra Cell Tofte AS.

Return on capital employed was 13 percent (neg.) and the operating margin 9 percent. The equity ratio was 61 percent (59) at year-end, which means that Södra has achieved all of its financial objectives.

In 2014, Södra embarked on a period of heavy investment that will continue for several years to come. The decision to date is to invest approximately SEK 5 billion in the three pulp mills, including more than SEK 4 billion in the mill at Värö outside Varberg.

"Our aim is to create long-term, profitable growth for the Södra Group. We believe that the forest industry plays a key role in achieving a sustainable bioeconomy, and we have the courage to lead the way," says Lars Idermark.

The Board proposes to the Annual General Meeting that a profit of SEK 553 million (281) be distributed to members, comprising a dividend of 6 percent on contributed capital, totalling SEK 170 million, a dividend of 8 percent on wood deliveries, totalling SEK 323 million, and a bonus issue of SEK 60 million.

>> Video interview with Lars Idermark
>> Year-end report 2014

2015-02-12 075547

Click Table to enlarge
For questions, please contact:
Lars Idermark, President and Chief Executive Officer
Telephone: +46 470 894 35
Carina Olson, Chief Financial Officer 
Telephone: +46 470 892 62
Annica Gerentz, Senior Vice President Corporate Communications
Telephone: +46 470 894 81
Published in European News
Tagged under
Page 7 of 16