Södra made a big improvement in reducing its operating loss in the first half of 2013, posting an operating loss of SKr29m (2012: -SKr202m).
It cited an improvement in sawn wood production volumes and prices, plus the dollar and euro gaining some ground against the strong Swedish krona in recent months.
"After a rough start, we are carefully optimistic about the rest of the year," said Lars Idermark, Södra group president and CEO.
Södra produced 772,000m3 of sawn timber in the first half, up 52,000m3 on last year. The Värö mill will increase production to three shifts in October.
Moelven recorded an operating profit of NKr11m, significantly better than the first quarter but weaker than the NKr46m a year ago.
CEO Hans Rindal said he was happy the timber division was making a profit again.
"Better prices and a stronger euro are two significant contributors," he said. "At the same time, there have been improvements in operations in several areas. The development appears to continue in the third quarter."
Mr Rindal said the group would be reducing its investment in new equipment from the fourth quarter, as it had recently been investing more than it had earned.
Significant investments were made in the first half and further spends will be completed in the third quarter at Moelven Valåsen AB, Moelven Vänerply AB and Moelven Eidsvold Vaerk AS.
