Full year
- Net sales rose to SEK 6,951 million (6,034) due to higher prices.
- Operating profit from continuing operations improved to SEK 1,280 million (924).
- Change in value of forest assets was SEK 1,462 million (1,723).
- Profit for the period amounted to SEK 2,055 million (1,924).
- The Swedish Parliament adopted in June a clearer assignment for Sveaskog. Forestry is the core business and the company is to be an independent player in the timber market.
Fourth quarter
- Net sales rose to SEK 1,830 million (1,653) due to higher prices.
- Operating profit from continuing operations decreased to SEK 269 million (334), mainly due to lower timber deliveries from the company’s own forests.
- Change in value of forest assets was SEK 1,243 million (1,028).
- Profit for the quarter amounted to SEK 1,072 million (1,029).
CEO’s comments
2010 was a very successful year for Sveaskog. The company exceeded all its financial targets during the year. Operating profit from continuing operations for the full year improved by 38 per cent and amounted to SEK 1,280 million (924), which is the best result for Sveaskog as a pure-play forest company.
We noted very high demand during the year and were able to increase both sales volumes and prices. Internal efficiency improved, providing a positive balance to higher costs related to increased business volumes and silvicultural measures.
During the year Sveaskog delivered 11.3 million cubic metres of wood raw material, which is 4 per cent more than in the previous year. Customer demand for sawlogs decreased in the fourth quarter but Sveaskog was still able to increase its annualised sales. Sales of pulpwood and chips rose by 5 per cent and biofuel sales rose 9 per cent for the full year.
Sveaskog sold over 30,800 hectares (39,500) of forest land during the year. A higher proportion of land deals took place in northern Sweden where hectare prices are lower which led to a reduction in capital gains of SEK 145 million.
The associate company Setra Group AB developed well in 2010 although some slowdown in the market was noted in the autumn. The underlying operating result improved sharply. During the fourth quarter earnings were charged with restructuring costs due to streamlining of the company’s operations. Sveaskog’s share of profits of associates improved to SEK 27 million (–139).
For further information, please contact
Gunnar Olofsson, President and CEO, tel + 46 8 655 91 74, + 46 703 34 15 16
Per Matses, CFO, tel + 46 8-655 92 90, + 46 70 - 655 98 20