Interim Report January-September 2007

Interim Report January-September 2007

                                                                Full
                    Quarter          January-September          year
MSEK          3-07     2-07     3-06     2007     2006          2006
Net
turnover     4 637    4 662    4 521   14 086   13 762         18 592
Operating
profit         642      529      610    1 804    1 714          2 303
Profit
after tax      438      329      382    1 164    1 090          1 459
Earnings
per
share,
SEK            5.2      3.9      4.5     13.7     12.9            17.2
Return on     10.6      8.2      9.5      9.5      9.0             9.0
equity, %

- The Group's net turnover for January-September 2007 amounted to MSEK 14 086
(January-September 2006: 13 762). 

- Profit after tax was MSEK 1 164 (1 090).
- Earnings per share amounted to SEK 13.7 (12.9). Return on equity was 9.5%
(9.0).
- The operating profit was MSEK 1 804 (1 714). The result was favourably
affected by higher newsprint prices, while it was adversely affected by higher
costs of wood and recovered paper, extensive maintenance and rebuilding stops
and lower deliveries.

The operating profit for the third quarter amounted to MSEK 642, which was MSEK
113 higher than for the second quarter. The profit includes MSEK 105 on the sale
of shares. Moreover, the result was adversely affected by costs and loss of
production associated with a stop for rebuilding at the board mill in Iggesund.

- The market situation for newsprint in Europe has been affected by lower demand
and higher imports. Holmen Paper's deliveries were 1% lower than in
January-September 2006. The prices of Holmen Paper's products were on average
some 3% higher than during the corresponding period last year.

The market situation for virgin fibre board in Europe was firm during the third
quarter. Demand for Iggesund Paperboard's products remained good but deliveries
decreased by 4% in relation to January-September 2006 owing to the stop for
rebuilding. Price increases have had some impact during the third quarter. 

- Holmen's Board has decided to invest in a sawmill adjacent to the Braviken
paper mill in Norrköping.





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
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.