Swedish forestry group Svenska Cellulosa AB reported a 22% drop in third-quarter net profit, citing lower selling prices, negative currency effects, and planned maintenance shutdowns.
Net profit for the July-to-September period fell to 832 million Swedish Kronor from 1.07 billion kronor a year earlier, the company said Friday.
Sales decreased 5% to 4.99 billion Swedish Kronor, as higher delivery volumes were unable to offset lower prices and unfavorable exchange rates.
Earnings before interest, taxes, depreciation, and amortization, or EBITDA, declined 18% to 1.64 billion kronor from 2.01 billion kronor.
"The uncertain market situation characterized by a weak economic environment, trade barriers, and currency fluctuations, continues to affect market conditions," SCA said in its report.
The company added that the forest industry is facing a challenging market with soft underlying demand across many product areas.
SCA noted lower selling prices for its solid-wood products, pulp, and packaging materials during the quarter.
Demand for pulp was weak in Europe and the U.S., while demand for packaging paper was soft due to lower industrial production among customers, according to the company.
The results also marked a decline from the second quarter, which the company attributed to the maintenance stops and lower delivery volumes.
For the first nine months of the year, net profit was 2.72 billion kronor, down from 2.82 billion kronor in the same period last year.