Year-end report 2010

Year-end report 2010


                                                       Quarter        
Full Year
MSEK                                            4-10   3-10     4-09  
2010    2009
Net turnover                                    4 747  4 205    4 659 
17 581  18 071
Operating profit                                625    383      392    1
596   1 620
Operating profit excl. items affecting comp. *  361    383      392    1
332   1 620
Profit after tax                                176    216      225   
704     1 006
Earnings per share, SEK                         2.1    2.6      2.7   
8.4     12.0
Return on equity, %                             4.2    5.2      5.5   
4.2     6.4
* The results for the fourth quarter of 2010 include items affecting
comparability in the amount of SEK +264 million, arising from
revaluation of forest (SEK +1 050), as well as an impairment loss and
provisions (totalling SEK -786 million) within Holmen Paper.

  · Profit after tax for 2010 was SEK 704 million (2009: SEK 1 006
million).
 
  · Earnings per share amounted to SEK 8.4 (12.0). The return on equity
was 4.2 per cent (6.4).
 
  · The Board of Directors proposes a dividend of SEK 7 (7) per share.
 
  · Operating profit amounted to SEK 1 596 million (1 620). The result
includes SEK 264 million in items affecting comparability from a
revaluation of forest (SEK +1 050 million), as well as an impairment
loss and provisions within Holmen Paper (SEK -786 million).
 
Operating profit, excluding items affecting comparability, totalled SEK
1 332 million (1 620). Holmen Paper's profit declined considerably as a
result of lower newsprint prices and higher fibre costs. Profitability
in other parts of the Group improved. Compared to the third quarter,
operating profit excluding items affecting comparability decreased by
SEK 22 million to SEK 361 million.
 
  · Demand for newsprint in the quarter was somewhat higher than in
2009. Current price negotiations are expected to lead to substantial
price increases during 2011. The virgin fibre board market was robust
and deliveries to Europe increased by 8 per cent during the year.
 
  · Decision has been made to close the smaller paper machine in Madrid.

For further information please contact:
Magnus Hall, President and CEO, tel. +46 8 666 21 05
Anders Jernhall, CFO, tel. +46 8 666 21 22
Ingela Carlsson, Public Relations Director, tel. +46 70 212 97 12