Swedish forestry group Södra saw its sales grow by SKr2.3bn to SKr15.9bn during 2005, mainly due to the processing of storm-felled trees.
The group said it maintained good profitability, recording a operating profits of SKr829m, compared to SKr865m in 2004.
Södra president Leif Brodén said: “The work related to the storm-damaged forest has released strong forces in the organisation. This has made it possible for Södra’s industrial operations to continue their development in parallel with Södra Skog’s extra work in processing and handling some 25 million m3 of storm-felled wood.”
The group’s forestry arm Södra Skog saw its sales increase to SKr9.1bn from SKr6.8bn, while operating profit was SKr54m.
Södra Timber’s production last year grew by 300,000m3 to 1.7 million m3, as the sawn timber market strengthened after a slow start.
The timber division’s operating profits grew strongly to SKr156m, compared to loss of SKr322m in 2004. Sales were up slightly to SKr2.7bn.
Södra Skogsenergi increased its deliveries of biofuel by about 20% for the third consecutive year. It recorded a operating profits of SKr9m and sales of SKr327m.
Mr Brodén said most of the timber felled by Hurricane Gudrun had been processed and the group would now focus on improving productivity.
