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Södra ’ s operating profit totalled SEK 421 million ( 400 ) for the third quarter . The strong results were due , inter alia , to higher prices and stable demand for both paper pulp and sawn timber . During the quarter , decisions were also taken about future-oriented initiatives for increased wood processing and biofuel production .
“ Market conditions for forest industry products remained favourable , and higher prices for both market pulp and sawn timber contributed to a strong result . Production levels remained stable at all of Södra ’ s facilities during the quarter , while Södra is in its most extensive investment phase for decades ,” said Lars Idermark ,
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President and CEO .
“ We also made decisions about important future initiatives during the period . These relate partly to increased wood processing in cross-laminated timber , and partly to the production of biofuel based on the by-product methanol from the pulp industry ,” said Lars Idermark , President and CEO .
Net sales in the third quarter increased 8 percent to SEK 4,763 million ( 4,417 ). Operating profit increased 5 percent to SEK 421 million ( 400 ). Operating margin was 9 percent ( 9 ).
The Södra Skog business area reported operating profit of SEK 12 million ( 11 ) and a sales increase of 8 percent in the third quarter .
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The Södra Wood business area reported operating profit of SEK 8 million ( 0 ). The increased result was mainly due to a positive price development and high demand for sawn timber . Sales decreased 8 percent due to restructuring and a deliberate product portfolio reduction .
The Södra Cell business area reported operating profit of SEK 421 million ( 377 ). The improved result was mainly due to strong demand . The new pulp mill in Värö is now fully operational and capacity has increased according to plan . The result was also positively impacted by the continuing high price level for softwood sulphate pulp .
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Lars Idermark , President and CEO
For the January to September period , net sales amounted to SEK 15,105 million ( 13,915 ), operating profit to SEK 1,336 million ( 699 ) and operating margin to 9 percent ( 5 ). Return on capital employed was 11 percent ( 6 ) and equity ratio was 55 percent ( 53 ).
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Quarterly report July-September 2017 in brief |
2017 |
2016 |
2017 |
2016 |
2016 |
Jul-Sep |
Jul-Sep |
Jan-Sep |
Jan-Sep |
Jan-Dec |
|
Net sales |
4,763 |
4,417 |
15,105 |
13,915 |
18,482 |
Operating profit before interest , taxes , depreciation and amortisation ( EBITDA ), SEK million |
726 |
658 |
2,263 |
1,519 |
2,101 |
Operating profit ( EBIT ), SEK million |
421 |
400 |
1,336 |
699 |
1,005 |
Profit before income tax , SEK million |
402 |
378 |
1,276 |
648 |
939 |
Operating margin , % |
9 |
9 |
9 |
5 |
5 |