The Swedish company Sodra recorded an operating result of -SEK929m for its business year 2012. The bulk of this was borne by the “Timber” division with an operating loss of -SEK469m. Interim CEO Gunilla Saltin attributes the negative result first and foremost to the slow pace of general economic activity within Europe, which affected almost all of the group’s divisions. Unfavourable exchange rates and various non-recurring items have also added to the strain on earnings. 1.399m m3 of softwood lumber were produced by the Timber division last year, which equates to a minor increase of 1.3%. Sales revenue fell by 7% nonetheless to SEK3.091bn. Besides regressive selling prices and the strong Swedish krona, the delay in putting the new sawmill into operation at the V r facility also played a part in running up the losses in this divisions. Once the ongoing work has been completed, such as the installation of an extra side-cut sorting systems and more drying kilns, the sawmill will probably not achieve the planned performance until autumn this year; roughly a year behind the original schedule.
