As a result of the large wood volumes processed after Sweden’s hurricane in January, Södra reports continued strong development with sales increasing to SKr11.8bn in the first three quarters of the year, compared to SKr10.1bn for the same period in 2004.
The result after financial income and expenses amounted to SKr624m, and the company said that during the period provisions of SKr834m were made to the storm payment fund which forms the base for compensation to members affected by the event.
Processing the storm-felled timber was made easier by the cold and rainy summer and less was downgraded than expected.
Meanwhile, Södra’s mills showed strong development with positive results for all business units. This has enabled the company to present a new, higher forecast for the company’s expected payment for members’ storm timber.
Södra president Leif Brodén said: “Thanks to a long-term focus on productivity development, the group is able to report a strong result despite difficult market conditions.”
There have been improvements in Södra’s pulp market as well as the sawn wood and interior product markets, while demand for biofuel has continued to increase.
Södra’s membership, which has grown, now stands at just over 35,000 and the affiliated membership area has increased to 2.2 million ha. Södra’s members jointly own just over half of all the privately owned forest land in southern Sweden.
