Swedish forest product group VIDA’s timber division has posted annual operating profits of SKr41.8m (2010: SKr220.5m).
Vida admitted profitability was squeezed by a weak sawn timber market in 2011 and high raw material prices.
“The outlook for 2012 continues to look weak and we cannot see any rapid change in economic activity,” it said.
“The raw material situation has been very good this year with a strong flow of timber to all facilities, but with continued high price levels.”
Vida believes sawmill industry restructuring will continue in 2012, but plans to maintain continued high production levels.
Its sawmill production totalled 1.15 million m³ in 2011 (2010: 1.08 million m³).
Group-wide, Vida registered SKr88.2m operating profits (2010: SKr248.3m), with the packaging division showing SKr52.1m operating profits but the paper business recorded a SKr10.2m loss.
