Friday, 20 May 2016 09:05

Operating profit of SEK 334 million for the Södra Group

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Södra’s operating profit for the first four months of the year totalled SEK 334 million (941). Sales amounted to SEK 6,239 million (6,243) and the operating margin was 5 percent (15).

sod logo“During the first four-month period, the forest economy was slightly weaker year-on-year, particularly in the sawn timber market. While sales and production volumes remained stable, exchange rates and price trends – which contributed to Södra’s historically high operating profit in 2015 – were less favourable. 2016 is a year of transition for Södra, since the effects of the investment programme at the Värö pulp mill will not be fully realised until 2017,” said Lars Idermark, President and CEO.

The Group’s operating profit totalled SEK 334 million (941). The decline was mainly due to a weaker price and currency trend. The preceding year’s result included a nonrecurring item of SEK 133 million related to divestment of the shares in Södra Cell Tofte AS.

Operating profit for the Södra Skog business area totalled SEK 33 million (41). The lower result was mainly due to a lower rate of harvesting in Södra’s own forests, both in Sweden and the Baltic countries.

Operating loss for Södra Wood totalled SEK -107 million (profit: 22). The negative result was due to weaker prices for sawn timber and less favourable exchange rates. Steps are being taken to improve profitability.

Operating profit for Södra Cell totalled SEK 466 million (968). The lower result was mainly due to unfavourable price and currency trends.

2016 2015 2015
Jan-Apr Jan-Apr 1 Jan-31 Dec
Net sales, SEK million 6,239 6,243 18,267
Operating profit/loss before depreciation, amortisation and impairment (EBITDA), SEK million 649 1,262 3,146
Operating profit/loss (EBIT), SEK million 334 941 2,162
Operating margin 5 15 12
Cash flow after investing activities, SEK million -699 740 218
Return on capital employed, % 7 22 17
Equity ratio, % 58 62 62

 For questions, please contact:
Annica Gerentz, Senior Vice President Corporate Communications
Tel: +46 (0)470-894 81

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