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Strong first quarter for Södra

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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 :201720162016
1 Jan-31 March1 Jan-31 March1 Jan-31 Dec
Net sales, SEK million5,098
4,54518,482
Operating profit before depreciation, amortisation and impairment (EBITDA), SEK million761
4842,101
Operating profit, SEK million541
2491,005
Profit before income tax, SEK million430
233939
Operating margin, %9
55
Return on capital employed, %11
77

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