Holmen: Interim Report January -- June 2003

STOCKHOLM, Sweden, Aug. 20, 2003 (PRIMEZONE) --Holmen:


                                   Quarter   January-June  Full year
 MSEK                           2-03    1-03    2003   2002       2002
 Net turnover                  4,010   4,001   8,011  7,965     16,081
 Operating profit                609     635   1,244  1,359      2,713
 Profit after financial items    551     581   1,132  1,277      2,564
 Profit after tax                392     389     781  1,013      1,959
 Earnings per share (before     4.91    4.86    9.77  12.67      24.50
 dilution), SEK
 Earnings per share (after      4.72    4.69    9.41  12.20      23.58
 dilution), SEK
 Return on equity, %            10.5    10.3    10.4   14.6       13.7

- The Group's net turnover for January-June amounted to MSEK 8,011 (January-June 2002: 7,965).

- Profit after tax was MSEK 781 (1,013).

- Earnings per share amounted to SEK 9.77 (12.67). The return on equity was 10.4 per cent (14.6).

- The operating profit was MSEK 1,244 (1,359). Holmen Paper's operating profit declined by MSEK 451 as a result of lower prices. Iggesund Paperboard's result increased by MSEK 147 primarily as a result of higher volumes.

Compared with the first quarter the result declined by MSEK 26 to MSEK 609.

- The market conditions for newsprint and magazine paper were weak during the second quarter. Holmen Paper's production has continued to be restricted. Prices were stable during the quarter but they were lower than in the previous year.

The market conditions for paperboard were stable during the quarter. Iggesund Paperboard's capacity utilisation remained high and prices were stable.

For further information please contact: Goran Lundin, President and CEO, tel +46 8 666 21 33 Anders Almgren, CFO, tel +46 8 666 21 16 Christer Lewell, Public Relations Director, tel +46 8 666 21 15.

Holmen is a forest products industry group with the capacity to produce 2.3 million tonnes of paper and paperboard per year. The EU countries, which account for some 85 per cent of the Group's turnover, are by far the largest market. Holmen Paper produces paper for daily newspapers, magazines, directories and advertising matter at three Swedish mills and one Spanish mill. Iggesund Paperboard produces paperboard for packaging and graphic purposes at two Swedish mills and one English mill. Iggesund Timber produces sawn timber at one Swedish sawmill. Holmen Skog manages the Group's one million hectares of forests and the annual volume harvested from company forests is some 2.5 million m3. Holmen Kraft produces in a normal year some 1,100 GWh of electricity at wholly and partly owned hydroelectric power stations in Sweden.

Holmen: Interim Report January -- June 2003

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