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· The Group's net turnover for January-June 2007 amounted to MSEK 9 449 (January-June 2006: 9 240).

· Profit after tax was MSEK 726 (709).

· Earnings per share amounted to SEK 8.6 (8.4). Return on equity was 9.0% (8.8).

· The operating profit was MSEK 1 162 (1 104). The result was favourably affected by higher newsprint prices, while it was adversely affected by higher costs of wood and recovered paper and extensive maintenance and rebuilding stops.

  • The operating profit for the second quarter amounted to MSEK 529, which was MSEK 105 lower than in the first quarter. The result was adversely affected by costs and loss of production associated with maintenance stops, as well as by lower deliveries.

· Demand for newsprint in Europe was stable during the second quarter. Holmen Paper's deliveries declined by 2% in relation to the first half-year of 2006. On average, the prices of Holmen Paper's products were approximately 4% higher than in the same period of the previous year.

  • The market situation for virgin fibre board in Europe was strong during the second quarter. Iggesund Paperboard's deliveries remained at a high level but were 1% lower than in the first half-year of 2006. Prices were increased towards the end of the second quarter.

The Holmen Group

Holmen is a forest industry group that manufactures printing paper, paperboard and sawn timber and runs forestry and energy production operations. The company’s extensive forest holdings and its high proportion of energy production are strategically important resources for its future growth.

Holmen AB

Tel: 08-666 21 00

E-post: info@holmen.com

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