The results compares to an operating loss of SKr590m a year ago. Sales were down SKr532m to SKr12.4bn.

Södra said its improved result was in spite of a weak economic situation across its markets and the strong Swedish krona.

The third quarter saw a big change in fortunes, with operating profits, excluding restructuring costs, reaching SKr221m – SKr680m above the same period in 2012.

The company’s sawn timber business has gradually strengthened over this year and currently has stable demand and prices. Production for the first nine months totalled 1.08 million m2, up 84,000m3 on a year ago.

"We anticipate a continued high rate of production at our sawmills and we will produce more than 1.5 million m3 this year," it said.
"Next year, we expect to achieve total production of approximately 1.7 million m3."

The Väro mill is currently operating a three-shift production system in order to establish profitability.