Interim Report January-September 2008

Interim Report January-September 2008

                         Quarter             January-September Full year
MSEK               3-08     2-08      3-07      2008      2007      2007
Net turnover      4 591    4 826     4 637    14 291    14 086    19 159
Operating
profit               64      257       642       767     1 804     2 843
Operating
profit excl.
items
affecting
comparability*      362      320       642     1 128     1 804     2 286
Profit after
tax                 -24      124       438       371     1 164     1 505
Earnings per
share (after
dilution), SEK     -0.3      1.5       5.2       4.4      13.7      17.8
Return on          -0.6      3.0      10.6       3.0       9.5       9.2
equity, %
*  Item affecting comparability in the third quarter of 2008 relates to
a provision of costs for the closure of Wargön Mill of MSEK 298. The
second quarter figure includes a cost of MSEK 115 for the closure of PM2
at Hallsta Paper Mill and income of MSEK 52, corresponding to the
effects on the result of the fire at Braviken Paper Mill. Items
affecting comparability of 2007 relate to a write-down of MSEK 1 603
within Holmen Paper, a reversed write-down of MSEK 60 within Holmen
Timber, and a positive revaluation of forests by MSEK 2 100 within
Holmen Skog.
·  The Group's net turnover for January-September 2008 amounted to
MSEK 14 291 (January-September 2007: 14 086).
·  Profit after tax was MSEK 371 (1 164).
·  Earnings per share after dilution amounted to SEK 4.4 (13.7). Return
on equity was 3.0% (9.5).
·  The operating profit was MSEK 767 (1 804). This figure includes net
costs affecting comparability of MSEK 361 within Holmen Paper, of which
a provision in the third quarter for the closure of Wargön Mill
accounted for MSEK 298.

The operating profit excluding items affecting comparability amounted to
MSEK 1 128 (1 804). The decline in the result is due to lower newsprint
prices and the higher cost of wood and other input goods.
·  The operating profit excluding items affecting comparability for the
third quarter amounted to MSEK 362, which was MSEK 42 higher than for
the second quarter. The improvement in the result is mainly attributable
to seasonally lower personnel and maintenance costs, whereas the result
was adversely affected by higher costs of input goods.
·  Demand for newsprint in Europe was lower than in the previous year,
while exports from Europe rose, imports declined and some capacity was
taken out of production. This has resulted in a high level of capacity
utilisation at European producers.

Deliveries of virgin-fibre board from European producers to Europe
during January-September were broadly the same as in the previous year.
Prices have been increased in Europe during the second half of the year.

For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 05
Anders Almgren, CFO, tel +46 8 666 21 16
Ingela Carlsson, Public Relations Director, tel +46 8 666 21 15