Interim Report January-June 2008

Interim Report January-June 2008

                       Quarter               January-June      Full year
MSEK            2-08      1-08      2-07      2008       2007       2007
Net
turnover       4 826     4 875     4 662     9 700      9 449     19 159
Operating
profit           257       446       529       704      1 162      2 843
Profit
after tax        124       271       329       395        726      1 505
Earnings
per share
(after
dilution),
SEK              1.5       3.2       3.9       4.7        8.6       17.8
Return on        3.0       6.4       8.2       4.7        9.0        9.2
equity, %

* The Group's net turnover for January-June 2008 amounted to MSEK 9 700
(January-June 2007: 9 449). 

* Profit after tax was MSEK 395 (726). 

* Earnings per share after dilution amounted to SEK 4.7 (8.6). The return on
equity was 4.7% (9.0). 

* The operating profit was MSEK 704 (1 162). This result was adversely affected
by lower newsprint prices, negative currency effects, and higher costs, mainly
of wood. The profit includes costs relating to structuring measures at Hallsta
and the financial effects of the fire at Braviken, totaling a cost of MSEK 73
during the second quarter.

* The operating profit for the second quarter was MSEK 257, which was MSEK 189
lower than during the first quarter. In addition to the non-recurring items at
Holmen Paper the results were lower at Iggesund and Holmen Timber, partly
because of maintenance and rebuilding stops respectively, as well as being
seasonally lower at Holmen Energi.

* The market for newsprint in Europe remained weak during the second quarter.
Deliveries to Europe during January-June were 4% lower than during the
corresponding period in 2007. During the first half-year Holmen Paper's prices
were on average some 4% lower than in the corresponding period the previous
year.

The market situation for virgin fibre board in Europe was weaker than in the
previous year and deliveries from European producers to Europe were 1% lower
during the first half of 2008 than in the previous year. Iggesund's deliveries
were 4% lower. Iggesund's prices were higher than during the first half of 2007.

* Holmen's Board has today decided to initiate negotiations to close down the
business at Wargön Mill. The intention is for production to be totally
discontinued in December 2008. 



For further information please contact:
Magnus Hall, President and CEO, tel+46 8 - 666 21 05
Anders Almgren, CFO, tel +46 8 666 21 16
Ingela Carlsson, Public Relations Director, tel +46 8 666 21 15