Södra shows record result
Radically improved prices, larger volumes and increased productivity resulted in an operating profit for Södra of 1,994 million Kronor for the first three quarters of 2010 (311 million corresponding period last year) and a return on capital employed of 27 percent (4).A weaker dollar means, however, that the expectations for the remainder of the year are lower, according to Södra.The gross price for softwood pulp in the period January - September 2010 was 6,776 Kronor per ton (4,854) and for hardwood pulp 6,148 Kronor per ton (4,126). On Friday 15 October, corresponding prices were 6,338 Kronor per ton for long fiber and 5,698 Kronor per ton for short fiber. Deliveries of market pulp for the period increased to 1,552,000 tons (1,388,000).“We are continuing to see strong deliveries within Europe and believe that deliveries to Asia will increase. The development of the Dollar will be crucial for our earning capacity,” said Leif Brodén, President of Södra.?“With a two-week maintenance stop at both Södra Cell Mönsterås and Södra Cell Tofte during the last quarter, we anticipate a reduction in our pulp stocks. 2011 will see limited volumes of market pulp. Together with a continuing improvement in the situation for our pulp customers, we are still seeing a good market balance,” added Brodén.