Holmen’s 1Q operating profit down to SEK 628 million ($64 million)

Holmen’s operating profit for the 1Q 2020 was SEK 628 million ($64 million), a decline of 2.3% compared to SEK 643 million ($65.6 million) in the 1Q 2019. Lower selling prices had a negative impact on earnings, but this was largely offset by increased deliveries.

Profit after tax for the 1Q 2020 amounted to SEK 491 million ($50.1 million), which corresponds to earnings per share of SEK 3.0. Holmen’s sales up 5.6% to SEK 4.50 billion ($459 million).

Henrik Sjölund, President and CEO, comments: “COVID-19 has characterised our work in recent months. We took extensive measures at an early stage regarding both health and production in order to maintain operations, and we also acted quickly to secure stable, long-term financing. We have managed production and deliveries well, resulting in good profit of SEK 628 million ($64 million) in the 1Q. However, order intake for customer segments within paper and wood products in particular has decreased over the past month, which will have a negative impact on sales in the 2Q.”

Holmen is a forest industry group that manufactures paperboard, paper and wood products and runs forestry and energy production operations.