Södra's operating profit improved to SEK 503 million (loss: 99) during the first four months of the year. The profit increase is primarily the result of higher demand and prices and a lower cost level.
Net revenue amounted to SEK 5,838 million, corresponding to an increase of 5 per cent compared with the year-earlier period. Consolidated operating profit totalled SEK 503 million and all business areas reported positive and improved earnings. Profit after finance income and expenses improved to SEK 477 million. The result includes income of EUR 18.8 million from the sale of equipment from Södra Cell Tofte.
"We have had a good start to the year with favourable performance and better earnings for all of Södra's business areas. The improvement is due to our own efforts and better market conditions. The trend for the remainder of the year is largely dependent on market and exchange rate developments," commented Södra's President and CEO Lars Idermark.
"Södra's path forward is clear and we are working in line with our newly established Group strategy, in which an important step is the expansion of the Värö pulp mill. The project entails an investment of slightly more than SEK 4 billion and an increase in pulp production capacity from the current 425,000 tpy to 700,000 tpy at Södra Cell Värö," Idermark added.
First four-month period, January-April 2014, in brief
- Net revenue SEK 5,838 million (5,538)
- Operating profit SEK 503 million (loss: 99)
- Profit after finance income and expenses SEK 477 million (loss: 99)
- Cash flow after investments SEK 515 million (neg: 118)