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Pulp pushed up Södra's 1Q result

April 27 2011  Södra’s operating profit for the first quarter of 2011 was 378 million Kronor, compared to 371 million the same period last year. The pulp market continued to grow during the quarter.

Södra’s net sales increased in the first quarter of 2011 to 4,912 million Kronor (4,575). Return on capital employed was 15 percent, which is the same as the first quarter of 2010.The pulp market continued to grow steadily in the first quarter of 2011. The price of bleached softwood sulphate pulp continued to increase and at the end of the period, from 1 April, the price was 1,010 Dollars per ton. However, the weakening Dollar neutralized the price increase in terms of Swedish Kronor.Production from Södra’s five pulp mills amounted to 522,000 tons, compared with 506,000 tons in the same period last year.“Productivity at Södra is still increasing, and I’m thinking particularly of the employees’ suggestions for improvement. During the quarter we’ve implemented 1,062 improvement suggestions from employees, and total productivity has increased by a further 1.5 percent,” said Leif Brodén, CEO of Södra.A pulp line at Södra Cell Mörrum is being converted to produce dissolving pulp for the textile industry. The work is proceeding according to plan. Production is expected to start at the end of the year.

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