The January storms will have a large impact on Södra‘s operations for the next two years, according to president Leif Brodén.
Delivering Södra’s results for 2004, Mr Brodén reported profits after financial income and expenses of SKr911m, compared to SKr1.5bn in 2003. Net sales increased to SKr13.6bn compared to SKr13.2bn the previous year and record volumes were achieved in all business units.
Mr Brodén said the year had been characterised by strong demand for Södra’s products and a high level of activity in operations, giving a result in line with the group’s long-term profitability requirements.
Productivity increased by 3% during 2004 which Mr Brodén said more than compensated for the long-term real decline in prices.
However, he went on, 2004 had to be wrapped up quickly. “The storm of January 8 changed assumptions overnight for members and the business alike.
“Our biggest challenge just now is to get as much as possible of the storm-felled wood out of the forest before summer – and that task overshadows everything else.”
He said the clearing process was expected to take two years and Södra’s mills were adapting production to make best use of the storm-felled wood, most of which would be processed in the company’s pulp and saw mills.
Mr Brodén said: “Without doubt, the storm will have a large impact on our operation during both this year and next.”
