Södra’s operating profit for the first nine

months amounted to 879 million Kronor (1,994 million for the same

period last year).“The market is being affected by the uncertainty caused by the effects of the debt crisis in Europe and the USA. At the other end of the scale, we have globally high timber costs as a balancing factor. In addition, demand in Asia, and in particular in China, remains strong,” said Leif Brodén, Södra’s CEO.“How quickly the uncertainty will reverse and the markets bottom out and head back up again, will be determined mainly by how the politicians continue to handle the debt crisis,” added Brodén.The pulp market was characterized by prices that remained buoyant, compared with historical levels. Lower prices in Dollars over the period was compensated for by a stronger Dollar against the Krona. The accumulated average price over the first three quarters of the year amounted to 983 Dollars per ton for bleached softwood sulphate pulp and 853 Dollars per ton for hardwood pulp.Producers’ stocks of pulp increased over the quarter, with levels of short fiber pulp seeing the biggest increase. European customers’ stocks of purchased pulp remained at historically low levels.Södra's deliveries of pulp amounted to 1,374,000 tons (1,518,000). Södra’s pulp stock over the year has increased by 94,000 tons to 244,000 tons (171,000).Access to fiber raw material has been higher than normal throughout Sweden. Supplies to Södra’s operations have been stable, with unchanged prospects for the rest of the year as well. Access to raw materials has increased in Norway as well. Work to secure increased supplies of domestic Norwegian raw material for Södra’s operations there is continuing.“We are predicting that the European market will remain weak over the next year, but with strong development in Asia offsetting this. We are also seeing, for the first time in a long while, a certain change for the better on the North American market," Leif Brodén concluded. /KB