Interim Report January-June 2007

Quarter January-June Full year
MSEK 2-07 1-07 2-06 2007 2006 2006

Net turnove 4 662 4 787 4 661 9 449 9 240 18 592
Operating
profit 529 634 485 1 162 1 104 2 303
Profit
after tax 329 397 303 726 709 1 459
Earnings per
share, SEK 3.9 4.7 3.6 8.6 8.4 17.2
Return on 8.2 9.7 7.5 9.0 8.8 9.0
equity, %



• The Group’s net turnover for January-June 2007 amounted to MSEK 9 449 (January-June 2006: 9 240).

• Profit after tax was MSEK 726 (709).

• Earnings per share amounted to SEK 8.6 (8.4). Return on equity was 9.0% (8.8).

• The operating profit was MSEK 1 162 (1 104). The result was favourably affected by higher newsprint prices, while it was adversely affected by higher costs of wood and recovered paper and extensive maintenance and rebuilding stops.

The operating profit for the second quarter amounted to MSEK 529, which was MSEK 105 lower than in the first quarter. The result was adversely affected by costs and loss of production associated with maintenance stops, as well as by lower deliveries.

• Demand for newsprint in Europe was stable during the second quarter. Holmen Paper’s deliveries declined by 2% in relation to the first half-year of 2006. On average, the prices of Holmen Paper’s products were approximately 4% higher than in the same period of the previous year.

The market situation for virgin fibre board in Europe was strong during the second quarter. Iggesund Paperboard’s deliveries remained at a high level but were 1% lower than in the first half-year of 2006. Prices were increased towards the end of the second quarter.



For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 33
Anders Almgren, CFO, tel +46 8 666 21 16
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.