Third-quarter results posted by UPM-Kymmene and Stora Enso indicate that the recovery in European forest product demand has still not arrived. But Södra has managed to boost earnings despite what it describes as a weak global economy.

UPM’s pre-tax profits were €128m on sales of €2.43bn, slightly down compared to the preceding quarter. Operating profits of €1m in the wood products division were down from €18m in the second quarter.

President and chief executive officer Juha Niemelä said: “The earnings in the wood products industry dropped partly due to seasonal variation and the oversupply is not expected to ease up during the rest of this year.”

Stora Enso’s pre-tax profits improved to €107.4m on sales of €2.98bn, compared with €86.9m and €3bn in the previous quarter.

Södra, meanwhile, has reported a near doubling of pre-tax profits for the first nine months. Earnings were SKr1.15bn compared to SKr562m for the same period of 2002. Sales have also gone up from SKr8.7bn to SKr9.9bn.

&#8220The results show that Södra can be very competitive in the world market even during a weak general economy
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Södra president and chief executive officer Anders Wahrolén

The performance of Södra’s 10 sawmills, which produced 985,000m3 of sawn timber, was “satisfactory” despite some surplus in the market. Interior wood group Gapro’s market weakened but income developed positively.

The group said prices for its main product, bleached softwood pulp had stabilised and would be increased from November 1 because of an improved market situation and reduced stocks.

Södra president and chief executive officer Anders Wahrolén said: “The results show that Södra can be very competitive in the world market even during a weak general economy.”