Swedish state-owned forestry company Sveaskog, which has posted improved third quarter results, says its sawmill business has enjoyed a highly favourable market situation so far in 2003.
Operating profits were up to SKr270m from SKr209m a year ago. The better results were mainly volume-related, partly due to acquisitions.
Sveaskog says timber demand was high during the first half of 2003 but the market has weakened since the summer, primarily for whitewood. A stronger krona, higher production, a build-up of stocks and weakening in some export markets are moderating expectations for the rest of 2003.
