Sodra Was Unable to Match Either The Sales Revenue or The Operating Result

In its business year 2011, the Swedish forestry and timber group Södra was unable to match either the sales revenue or the operating result of the previous year. Owing to the comparatively slow pace of business since the second quarter and high log procurement costs, group sales fell by 8% to SEK18.191bn (SEK19.727bn). The operating result more than halved in 2011 to a total of SEK1.005bn (SEK2.271bn). The unfavourable development from the group's point of view in the value of the kronor against the euro contributed to reduced competitiveness in export and ultimately to the regressive results in the individual divisions as well. Södra recorded an operating loss of SEK307m in its "Timber" division for the business year 2011 after having achieved a positive result of SEK129m a year earlier. Sales revenue fell by almost 10% to SEK3.85m. Source: euwid-wood-products.com