Operations in 2016


Net sales

SEK 16,587m

Adjusted operating profit1)

SEK 2,211m

Adjusted operating margin1)

13.3%


Net sales decreased by 4% to SEK 16,587m (17,279). Organic sales, which exclude exchange rate effects, acquisitions and divestments, decreased by 3%, of which price/mix accounted for –3% and volume for 0%. The closure of a publication paper machine during the fourth quarter of 2015 decreased net sales by 3%. Exchange rate effects decreased net sales by 1%.

Solid-wood products showed lower prices (including exchange rate effects) and higher volumes. Pulp and kraftliner showed lower prices (including exchange rate effects) and lower volumes. Publication papers showed higher prices (including exchange rate effects) and lower volumes.

The adjusted operating profit1) decreased by 15% to SEK 2,211m (2,605). Lower prices (including exchange rate effects) and higher energy costs had a negative earnings effect. Lower distribution costs and raw material costs had a positive earnings effect.

The adjusted return on capital employed1) was 5.7% (6.9).

The operating cash surplus amounted to SEK 2,639m (3,319). Operating cash flow amounted to SEK 1,884m (2,501).

Capital expenditures amounted to SEK 3,190m (1,815).

Targets

  • To grow in line with the market
  • Return on capital employed is to be in the top quartile of the industry over a business cycle.

Outcome 2016

Organic sales

–3%

Adjusted return on capital employed1)

5.7%

1) Excluding items affecting comparability.

Net sales by product segment

Forest Products – Net sales by product segment (pie chart)Forest Products – Net sales by product segment (pie chart)

Net sales by region

Forest Products – Net sales by region (pie chart)Forest Products – Net sales by region (pie chart)
Key figures

SEKm

2016

2015

1)

Excluding items affecting comparability.

Net sales

16,587

17,279

of which internal

511

482

Operating cash surplus

2,639

3,319

Change in working capital

119

95

Current capital expenditures, net

–959

–869

Other operating cash flow

85

–44

Operating cash flow

1,884

2,501

Adjusted operating profit 1)

2,211

2,605

Adjusted operating margin, % 1)

13.3

15.1

Capital employed

40,109

37,216

Adjusted return on capital employed, % 1)

5.7

6.9

Strategic capital expenditures

 

 

plant and equipment

–2,231

–946

company acquisitions/divestments

112

279

Average number of employees

4,275

4,153

No. of employees at Dec. 31

4,165

4,276

Assembly line (photo)

Net sales and adjusted operating margin1)

Forest Products – Net sales and adjusted operating margin (bar and line chart)Forest Products – Net sales and adjusted operating margin (bar and line chart)

1) Excluding items affecting comparability.
2012 and 2013 restated in accordance with IFRS 10 and 11.

Adjusted return on capital employed1)

Forest Products – Adjusted operating profit and adjusted return on capital employed (bar and line chart)Forest Products – Adjusted operating profit and adjusted return on capital employed (bar and line chart)

1) Excluding items affecting comparability.
2012 and 2013 restated in accordance with IFRS 10 and 11.