Thursday, 21 May 2015 08:55

Good start to 2015 for the Södra Group

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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

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