Fire came down Holmen’s result – ATL

The demand for publication papers in Europe decreased by six per cent from January to November last year. This means that the profitability of producing ordinary newsprint is low, prompting the Park to the fourth quarter of last year to write down assets.

Additionally suffered Hallsta paper mill by a fire in the factory in late November, which also affects the results negative.

loss of 555 million

Holmen’s net sales for the fourth quarter of last year was 3.689 billion (4.011).

the operating profit for the period was a loss of 555 million, compared with a profit of 493 million in the corresponding quarter of 2014. excluding non-recurring items was a profit of 376 kronor (493).

the operating profit for the full year 2015 was SEK 1.7 billion, excluding items affecting comparability ( 1.734).

price Decline on paper

Full-year earnings were negatively impacted by price declines of publication papers and solid-wood products as well as several major rebuilding and maintenance stops.

in the last year plus side Holmen was a weaker Swedish krona, good production and cost rationalization.

Holmen has two sawmills in Iggesund and Braviken. Holmen Timber’s deliveries amounted to 730 000 cubic meters in 2015, which was slightly higher than the year before.

Lower demand

The market for sawn timber in Europe remained weak during the fourth quarter due to high range. This also affects the Holmen forest owners. The business area Holmen notes that demand for timber and pulpwood in Sweden was lower than normal in the fourth quarter and that timber prices fell slightly.

Holmen Timber’s operating profit for 2015 amounted to SEK 9 million, compared with a profit of 37 million SEK in 2014, excluding items affecting comparability. The decline was due to lower selling prices and higher timber costs, but slowed down even in the sawmill portion of a weaker Swedish krona.

The Board proposes a dividend of SEK 10.50 per share, which means a total dividend of 882 million.

There is an increase compared to SEK 10 per share last year, but lower than analysts’ expectations, which was a dividend per share of 10.86 kronor, according to SME Direkt forecast service.