Södra Interim Results Swing to Profitability on Improved Volumes, Prices

"Demand and orders for Södra's products improved during the second four-month period." – Lars Idermark, President and CEO, Södra.

Sept. 15, 2014 - Södra's earnings to date this year (accumulated January-August) improved to SEK 1,012 million (loss: 786) and amounted to SEK 509 million (loss: 687) for the second four-month period. 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," says Södra's President and CEO Lars Idermark.

Net revenue for the first eight months of the year increased to SEK 11,429 million (11,137), primarily the result of increased volumes and higher prices. Net revenue for the second four-month period amounted to SEK 5,591 million (5,599).

Operating profit for the first eight months of the year amounted to SEK 1,012 million (loss: 786). The accumulated result includes a positive effect of SEK 173 million from the sale of equipment from Södra Cell Tofte AS. Earnings in the preceding year were charged with restructuring costs for the discontinuation of Södra Cell Tofte AS. Consolidated operating profit for the second four-month period amounted to SEK 509 million (loss: 687) and all business areas displayed a continued positive earnings trend.

Profit after finance income and expenses improved to SEK 953 million (loss: 801) for the first eight months of the year and amounted to SEK 476 million (loss: 702) for the second four-month period.

1 May - 31 August 2014

  • Net revenue SEK 5,591 million (5,599)
  • Operating profit SEK 509 million (loss: 687)
  • Profit after finance income and expenses SEK 476 million (loss: 702)
  • Cash flow after investments SEK 260 million (396)

1 January - 31 August 2014

  • Net revenue SEK 11,429 million (11,137)
  • Operating profit SEK 1,012 million (loss: 786)
  • Profit after finance income and expenses SEK 953 million (loss: 801)
  • Cash flow after investments SEK 775 million (278)

Södra's full interim 2014 report can be found on the company's website: www.sodra.com.

Sodra, with headquarters in Vaxjo, Sweden, produces market pulp, wood products and biofuels. The company operates three pulp mills in Sweden (Mörrum, Mönsterås and Värö.) with a total capacity of 1.6 million tonnes/year. Sodra produces both softwood and hardwood pulp — 90% softwood and 10% hardwood. To learn more, please visit: www.sodra.com.

SOURCE: Södra