Sveaskog Interim Report January -- March 2004

STOCKHOLM, Sweden, April 28, 2004 (PRIMEZONE) -- Sveaskog conducts forestry and timber sales based on its holdings of approximately 3.5 million ha of productive forest land. The forestry operations also include property management as well as commercial activities relating to hunting, fishing and recreation. The forestry operations are conducted under the Sveaskog name. The Group also includes industrial operations in the form of cartonboard manufacture, AssiDoman Cartonboard. In addition, Sveaskog has a 50% stake in the wood products industry company Setra Group AB.


                                                Quarter

 MSEK                                           2004 Q1  2003 Q4    2003 Q1

 Net sales                                        2,029    1,991   2,234
 Operating profit                                   371      366     412
 (of which, capital gains from property sales)     (68)     (98)    (35)
 Profit after net financial items                   234      245     275
 Net profit for the period                          169      363     198
 Net earnings per share (SEK)                      1.43     3.07    1.67

. Operating profit for the first quarter was MSEK 371, an increase of MSEK 5 or 1%, compared with the previous quarter. Earnings from the cartonboard business (Cartonboard) improved since earnings in the previous quarter were affected by the annual maintenance shutdown. Share of profits from Setra also improved since the previous quarter was negatively affected by non-recurring restructuring costs. Earnings from Forestry operations decreased due to lower deliveries from own forests. Gains from property sales decreased since a large number of property deals were completed before the end of 2003.

. Compared with the first quarter of 2003, operating profit decreased by MSEK 41 or 10%. Earnings declined for Forestry operations mainly due to lower deliveries from own forests. Cartonboard's earnings were unchanged. Share of profits of Setra Group in 2004 was lower than AssiDoman Timber's operating profit in 2003. Gains from property sales increased.

Sveaskog Interim Report January -- March 2004

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