Wednesday, 23 September 2015 09:20

Historically strong earnings for Södra

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2015 02 12 082029Södra reported a strong earnings trend for the first eight months of the year. Operating profit rose to SEK 1,660 million (1,012), sales increased to SEK 12,186 million (11,429) and the operating margin was 14 percent (9).

“Södra is performing well. A healthy second four-month period has finished with a historically strong overall result for the Group for the period through August. This is largely due to high price levels for finished goods and mainly to a favourable currency situation – but also because Södra is becoming an increasingly efficient, innovative and value-generating Group,” said CEO Lars Idermark.

Operating profit for the second four-month period amounted to SEK 718 million (509) and sales to SEK 5,943 million (5,591), which yielded an operating margin of 12 percent (9). The improved earnings were due to positive demand for Södra’s products and a favourable currency situation.

“The Södra Cell business area continues to deliver a very strong performance. Stable and efficient production at the mills, while we are investing SEK 5 billion to increase production, is impressive. The profit trend for Södra Wood is more problematic. Efforts to improve operational efficiency are progressing well, but lower prices and weaker market conditions are putting pressure on profitability. Eventually, structural changes will also be required to improve profitability. Several minor measures have already been implemented, such as concentrating more of our business operations into fewer and larger units,” added Idermark.

Södra in brief, January-August 2015 period:

  2015 2014 2015 2014 2014
  May-Aug May-Aug Jan-Aug Jan-Aug Jan-Dec
Net sales, SEK million 5,943 5,591 12,186 11,429 17,339
Operating profit before depreciation, amortisation and impairment (EBITDA), SEK million 1,028 824 2,292 1,656 2,552
Operating profit, SEK million 718 509 1,660 1,012 1,516
Operating margin, % 12 9 14 9 9
Cash flow after investing activities, SEK million 141 260 881 775 267
Return on capital employed, %     20 13 13

For questions, please contact:

Lars Idermark, Chief Executive Officer
Telephone: +46 470 894 35

Read 2769 times Last modified on Wednesday, 23 September 2015 09:22