Despite a weak economic situation and a strong Swedish krona, Södra saw a significant increase in its underlying earnings in 2013, according to the company’s newly released income statement for 2013. Operating profit, excluding restructuring costs, amounted to SEK 400 million, representing a SEK 1,329 million increase on last year.
Net sales for the group amounted to SEK 16,580 million, which represents a drop of one per cent. This drop is primarily due to a fall in sales of electricity certificates and the closing of the CTMP mill at Follafoss, Norway. At the same time, costs have fallen by nine per cent.
Operating profit, restructuring costs excluded, rose by SEK 1,329 million compared to last year and totalled SEK 400 million.
Operating profit, restructuring costs included, amounted to SEK -417 million. Over the corresponding period for 2012, operating profit was SEK -929 million.
In July, Södra decided to close its pulp mill in Tofte, Norway. Restructuring costs amounted to SEK 817 million and are accounted for separately in the results.
Cash flow after investments was SEK 597 million, which is SEK 1,412 million higher than the corresponding period for 2012.
Södra’s CEO Lars Idermark comments on the report:
"Our markets have continued to be characterised by a weak economic situation and a strong Swedish krona. Despite this, our earning capacity grew significantly over the year. If we exclude the restructuring costs for the closure of the pulp mill in Tofte, our operating profit amounted to SEK 400 million, which is SEK 1,329 million better than in 2012.”
