Sveaskog’s 3Q 2020 net sales decreased by 16% to SEK 1,307 million, compared to SEK 1,547 million. Prices of wood raw materials were down by 9% on average while total delivery volumes declined 7%. High stock levels with customers in the pulp and paper industry combined with shutdowns of maintenance have restricted deliveries during the quarter.
3Q 2020 operating profit decreased by 55% to SEK 136 million ($15.8 million), compared to SEK 301 million ($35 million) in the 3Q 2019. The decrease in profit can be attributed primarily to lower prices, lower volumes and increased costs of forest management, nature conservation and IT development. Deliveries have been lower, both from our own forests and from externally acquired raw materials.
Sveaskog’s President and CEO Hannele Arvonen said: “A dip in earnings was expected, as prices of our products declined gradually in 2019, and the trend has continued into 2020. Sveaskog has conducted its forestry operations to date with no operational disruptions during the coronavirus pandemic. Sveaskog contributes to the recovery of society by supporting local contractors through unchanged employment and by refraining from collecting rent from companies that are dependent on tourism. September saw the launch of Entrén, a new web portal aimed at all our contractors. This is a unique initiative that is intended to provide our key contractors with a series of benefits and to strengthen our shared business.”
Sveaskog’s net sales decreased by 9% to SEK 4,916 million in January–September 2020.
Operating profit decreased by 28% to SEK 812 million ($94.4 million) in January–September 2020. The decrease in profit can be attributed primarily to lower prices and increased costs of forest management, nature conservation and roads, but has been partly offset by higher delivery volumes from its own forests. However, deliveries from externally sourced wood raw materials were lower.
Sveaskog is Sweden’s largest forest owner and sells timber, pulpwood and biofuel
Main Photo: Sveaskog’s President and CEO Hannele Arvonen