Strong first quarter for Södra
Södra’s operating profit totalled SEK 451 million (249) for the first quarter. The operating margin improved to 9 percent (5) and return on capital employed to 11 percent (7).
“Södra’s first quarter was strong with increased net sales, higher earnings and an improved operating margin. Robust demand contributed to the favourable volume and price trend, and the currency trend was also positive. Based on its Group strategy, Södra will continue to strengthen and focus on increased digitisation, innovation and sustainability,” said Lars Idermark, President and CEO.
“One important reason for the positive result was the improvement for the sawmill operations, where the ongoing restructuring process – with a customer and market focus, and the development of new products and services – is progressing according to plan,” said Lars Idermark.
In the Södra Wood business area, earnings rose SEK 96 million to SEK 3 million (loss: 93).
The Södra Cell business area was positively impacted by higher volumes due to expanded capacity at the Värö pulp mill. Earnings were also affected by favourable price levels and a positive trend for the business area’s currencies. Operating profit totalled SEK 457 million (371).
The Södra Skog business area reported operating profit of SEK 16 million (18) for the first quarter.
“Due to the positive trend we have seen since autumn 2016, the second quarter should also be strong. At the same time, our efficiency measures will continue with the aim of further improving profitability. However, there are still a number of geopolitical concerns and our business environment is rapidly changing,” said Lars Idermark.
|January-March 2017 in brief:||2017||2016||2016|
|1 Jan-31 March||1 Jan-31 March||1 Jan-31 Dec|
|Net sales, SEK million||5,098||4,545||18,482|
|Operating profit before depreciation, amortisation and impairment (EBITDA), SEK million||761||484||2,101|
|Operating profit, SEK million||451||249||1,005|
|Profit before income tax, SEK million||430||233||939|
|Operating margin, %||9||5||5|
|Return on capital employed, %||11||7||7|
For questions, please contact:
Anna Belfrage, CFO Södra,
Tel: +46 (0)470-890 40
Annica Gerentz, Director of Communications, Södra,
Tel: +46 (0)470-894 81
Tel: +46 (0)470-890 90
Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry.