The company said 2006 was a “return to normal conditions” following the processing of wood felled by Hurricane Gudrun. Södra has also seen a strong start to 2007, despite a new storm which felled almost six million m3 of forest.
The market for sawn timber in 2006 was characterised by a shortage situation in certain ranges, driven by strong consumption in Europe. Despite slowing demand in the US, the timber business posted operating profits of SKr270m, up from SKr156m last time.
The market for interior wood products also showed strong development. The Gapro business unit was held back “by a highly strained situation for raw material supply” which the company said put upwards pressure on raw material prices – and, as a result, operating profits fell to SKr13m.
