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Investing.com -- Holmen (ST:HOLMb) shares slid nearly 3% on Thursday after the company reported weak results for the second quarter.
The Swedish paper group posted second-quarter EBIT of SEK807 million, down from SEK987 million in the previous quarter and 11% below the SEK905 million expected in an Infront consensus.
The shortfall was driven by the renewable energy and wood segments, while the board and paper division performed in line despite maintenance work.
The operating margin came in at 14%, compared with 17% in the same period last year.
Revenue fell 5.4% to SEK5.573 billion from SEK5.894 billion.
"The second quarter was marked by uncertainty about how tariffs would affect trade flows and consumption, while at the same time construction activity remained weak," said CEO Henrik Sjolund in the release.
"The wood products market is being affected by weak construction activity, alongside limits on supply due to a global shortage of raw materials."
Holmen’s earnings per share (EPS) for the quarter were SEK3.8, down from SEK4.7, while profit after tax declined to SEK602 million from SEK744 million a year earlier.
"We expect shares lower on 2Q miss today (but believe investor expectations were cautious into print), and see 5-10% cuts to SEK3.8bn 2025 cons EBIT of SEK3.8bn," Jefferies analysts said in a note.