Swedish forest products company Holmen AB on Thursday reported a higher third-quarter net profit, boosted by a significant tax-related court victory that masked a decline in its core business performance.
Profit after tax for the three months to Sept. 30 rose to 944 million Swedish kronor from 816 million kronor a year earlier, the company said.
However, operating profit fell to 737 million kronor from 1.08 billion kronor, while net sales declined to 5.33 billion kronor from 5.63 billion kronor.
The company said its bottom line was positively affected by 395 million kronor after a Swedish court granted it the right to tax deductions linked to previous operations in Spain.
The decline in operating profit for the first nine months of the year was attributed to major maintenance shutdowns and lower electricity prices in northern Sweden.
Compared to the second quarter, operating profit also fell due to lower selling prices for its wood products, according to the company.
For the January to September period, profit after tax was largely flat at 2.30 billion kronor, while operating profit dropped to 2.53 billion kronor from 3.01 billion kronor in the same period last year.
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