Swedish forest product manufacturer Holmen saw its operating profits for Q3 decrease by SEK70m as a result of lower selling prices in its wood products division.

The group’s operating profit for the period totalled SEK737m compared to SEK1.078m a year ago.

The wood products division saw sales in Q3 total €943m (Q3 2024: €921m) with an operating loss at SEK-91m. The loss compares to an operating profit of SEK0m in Q3, 2024.

Deliveries for the period totalled 318,000m3. Production has been limited by a rebuild shutdown at Iggesund Sawmill and a shortage of logs in southern Sweden.

Holmen blamed then division’s results on an increased cost of logs, the mill shutdown, and an impairment loss on inventories, which were only partially offset by higher selling prices.

The company said Q3 was characterised by weak demand for construction products and cautious consumers, which affected capacity utilisation throughout the whole forest.

Source: Holmen AB