Södra increases operating profit
Södra’s operating profit to date this year (accumulated January-August) improved to SEK 1 billion, compared with a loss of 786 million for the same period last year. The earnings improvement was primarily attributable to increased demand and higher prices for finished goods.
“Demand and orders for Södra’s products improved during the second four-month period and the Group reported a positive performance and improved profitability. All of the Södra Group’s business areas continued to improve their earnings. The improvement is mainly the result of a more favourable market in addition to the Group’s own productivity enhancing measures and continued efficiency gains,” said Södra’s President and CEO Lars Idermark.
Södra Cell reported the largest improvement, with operating profit for the four-month period increasing to SEK 477 million, compared with a loss of SEK 600 million. The price of pulp was at an even level during the period and demand for Södra Cell’s products was favourable.
The textile pulp market remained characterised by price pressure during the second four-month period.