2009-10-22 11:07:31 CEST
2009-10-22 11:09:01 CEST
REGULATED INFORMATION
Metsäliitto Osuuskunta - Interim report (Q1 and Q3)
Metsäliitto Group Interim Report January-September 2009
Metsäliitto Group Interim Report 1 January-30 September 2009, October
22, 2009 at 12.00 a.m.
Metsäliitto Group's operating result excluding non-recurring items
EUR 9 million positive in July-September
Operating result excluding non-recurring items EUR -119 million in
January-September
Result for January-September
* Sales EUR 3,647 million (1-9/2008: EUR 4,981 million).
* Operating result excluding non-recurring items was EUR -119
million (120). Operating result including non-recurring items was
EUR -186 million (208).
* Result before tax excluding non-recurring items was EUR
-232 million (-43). Result before tax including non-recurring items
was EUR -310 million (44).
Result for July-September
* Sales EUR 1,155 million (7-9/2008: EUR 1,595 million).
* Operating result excluding non-recurring items was EUR 9
million (27). Operating result including non-recurring items was
EUR 7 million (19).
* Result before tax excluding non-recurring items was EUR -51
million (-28). Result before tax including non-recurring items was
EUR -53 million (-35).
Events in the third quarter
* Positive signs in the Group's core businesses: The result
of M-real's Consumer Packaging business improved significantly -
the demand for consumer packaging board increased and the operating
rates were at a good level; strong profit development in the tissue
paper business continued; the price of pulp increased considerably
and its operating rates increased.
* Metsäliitto signed a letter of intent with UPM-Kymmene
Corporation in July concerning the new ownership structure of
Metsä-Botnia.
* M-real received a cash payment of EUR 190 million in August
from Sappi as an early payment of its vendor notes in connection
with the Graphic Papers transaction.
Events after the review period
* An agreement on the new ownership structure of Metsä-Botnia
and the divestment of Metsä-Botnia's operations in Uruguay to
UPM-Kymmene Corporation was signed on 22 October 2009."Positive signs can be seen in several of the Group's business
operations which is reflected in the figures for the quarter.
However, the forest industry is dependent on the general economic
development, and therefore it is too early to speak about a clear
turn of the market for the better."
Kari Jordan, President & CEO, Metsäliitto Group
Metsäliitto Group
+-------------------------------------------------------------------+
| Income statement | 2009 | 2008 | 2009 | 2008 | 2008 |
| (Continuing | 1-9 | 1-9 | Q3 | Q3 | 1-12 |
| operations) | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Sales | 3 647 | 4 981 | 1 155 | 1 595 | 6 434 |
|---------------------+--------+---------+--------+--------+--------|
| Other operating | 115 | 215 | 31 | 43 | 239 |
| income | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Operating | -3 672 | - 4 702 | -1 103 | -1 524 | -6 189 |
| expenses | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Depreciation and | -277 | -286 | -76 | -95 | -482 |
| impairment losses | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Operating result | -186 | 208 | 7 | 19 | 2 |
|---------------------+--------+---------+--------+--------+--------|
| Share of results | -11 | 11 | -1 | 8 | 6 |
| in associates | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Exchange gains | 1 | 1 | 4 | 0 | 19 |
| and losses | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Other net | -113 | -176 | -63 | -63 | -260 |
| financial items | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Result before | -310 | 44 | -53 | -35 | -233 |
| income tax | | | | | |
|---------------------+--------+---------+--------+--------+--------|
| Income tax | 19 | -6 | -6 | 2 | 60 |
|---------------------+--------+---------+--------+--------+--------|
| Result from | -291 | 39 | -59 | -33 | -172 |
| continuing | | | | | |
| operations | | | | | |
+-------------------------------------------------------------------+
Metsäliitto Group
+-------------------------------------------------------------------+
| Profitability | 2009 | 2008 | 2009 | 2008 | 2008 |
| (Continuing operations) | 1-9 | 1-9 | Q3 | Q3 | 1-12 |
|--------------------------+-------+-------+-------+-------+--------|
| Operating result, EUR | -186 | 208 | 7 | 19 | 2 |
| mill. | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| - " -, excluding | -119 | 120 | 9 | 27 | 45 |
| non-recurring items | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| Return on capital | -4.8 | 6.1 | 1.3 | 2.7 | 0.5 |
| employed, % | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| - " -, excluding | -2.9 | 3.9 | 1.4 | 3.3 | 1.3 |
| non-recurring items | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| Return on equity, % | -25.1 | 2.3 | -17.2 | -6.1 | -8.4 |
|--------------------------+-------+-------+-------+-------+--------|
| - " -, excluding | -18.3 | -3.0 | -16.6 | -4.7 | -6.4 |
| non-recurring items | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| | | | | | |
|--------------------------+-------+-------+-------+-------+--------|
| Financial position | 2009 | 2008 | 2009 | 2008 | 2008 |
| | 30.9. | 30.9. | 30.6. | 30.6. | 31.12. |
|--------------------------+-------+-------+-------+-------+--------|
| Equity ratio, % | 23.9 | 27.5 | 25.6 | 30.1 | 26.0 |
|--------------------------+-------+-------+-------+-------+--------|
| Net gearing ratio, % | 180 | 162 | 162 | 147 | 149 |
|--------------------------+-------+-------+-------+-------+--------|
| Interest-bearing net | 2 363 | 3 373 | 2 348 | 3 421 | 2 666 |
| liabilities, EUR mill. | | | | | |
+-------------------------------------------------------------------+
+----------------------------------------------------------------------+
|Sales and Operating | Wood | Wood |Pulp *) | Board |Tissue |
|result |Supply |Products|Industry| and | and |
|1-9/2009 | |Industry| | Paper |Cooking|
|(EUR mill.) | | | |Industry|Papers |
|-------------------------+---------+--------+--------+--------+-------|
|Sales | 809| 613| 898| 1 826| 661|
|-------------------------+---------+--------+--------+--------+-------|
| Other operating income | 6| 4| 22| 86| 5|
|-------------------------+---------+--------+--------+--------+-------|
| Operating expenses | -804| -626| -933| -1 956| -563|
|-------------------------+---------+--------+--------+--------+-------|
| Depreciation & | -3| -29| -149| -171| -31|
|impairment losses | | | | | |
|-------------------------+---------+--------+--------+--------+-------|
|Operating result | 8| -38| -162| -215| 72|
|-------------------------+---------+--------+--------+--------+-------|
| Non-recurring items | 0| 0| 75| 58| 0|
|-------------------------+---------+--------+--------+--------+-------|
|Operating result | | | | | |
|excl. non-recurring items| 8| -38| -87| -157| 72|
+----------------------------------------------------------------------+
*) Represents 100%. The Metsäliitto Group consolidates 53% of the
Pulp Industry.
The figures are unaudited
METSÄLIITTO GROUP
INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2009
Sales and result
Metsäliitto Group's sales for January-September were EUR 3,647
million (4,981).
Operating result excluding non-recurring items was EUR -119 million
(120). Net non-recurring items amounted to EUR -67 million (88), EUR
65 million of which was already recognised during the first half of
the year. Of the non-recurring costs, EUR 40 million was related to
the closure of the Metsä-Botnia Kaskinen mill, EUR 29 million to the
closure of the M-real Hallein paper mill and EUR 4 million to
M-real's ongoing efficiency improvement programmes. A sales gain of
EUR 8 million was recognised for the Vapo deal during the second
quarter. Non-recurring items amounted to EUR -2 million during the
third quarter.
The third-quarter operating result excluding non-recurring items was
EUR 9 million positive (Q2/09: EUR -61 million and Q1/09: EUR -67
million). The result was improved by, among others, higher delivery
volumes, increase in the price of sawn timber, decrease in the price
of wood raw material, higher sales price of pulp and implemented
cost-savings. The good profit development of the tissue paper
business continued during the third quarter.
Metsäliitto Group's operating result including non-recurring items
for January-September was EUR -186 million (1-9/2008: 208). Financial
income amounted to EUR 28 million (17), results from associates were
EUR -11 million (11) and financial expenses totalled EUR 141 million
(193).
Net exchange gains/losses recognised in financial items were EUR 1
million (1). The US dollar strengthened on average 10% in
January-September, the British pound weakened by 13% and the Swedish
krona by 14% year-over-year.
Share of results in associated companies include a EUR 11 million
non-recurring expense item related to the sale of Myllykoski Paper's
Sunila shares. In the first quarter, M-real made a market repurchase
with a nominal value of approximately EUR 60 million of its EUR 400
million bond, which matures in December 2010. A profit of
approximately EUR 31 million for the purchase was recognised in
financial income.
A loss of approximately EUR 30 million was recognised in financial
items during the third quarter after Sappi Ltd had repaid its
four-year debt of EUR 220 million early to M-real. The repayment
price was 86.5% of the nominal value of the vendor notes, or
approximately EUR 190 million.
The result before tax was EUR -310 million (44), and taxes, including
changes in deferred tax liabilities, totalled EUR 19 million (-6).
The result for continuing operations was EUR -291 million (39), the
result for discontinued operations EUR -15 million (-276) and the
result for the review period EUR -306 million (-237).
Of the period's results, EUR -140 million (-73) was attributable to
parent company members and EUR -166 million (-164) to minority
interests.
The Group's return on capital employed for continuing operations was
-4.8% (6.1), and the return on equity was -25.1% (2.3). Excluding
non-recurring items, return on capital employed was -2.9% (3.9) and
return on equity was -18.3% (-3.0).
Balance sheet and financing
Metsäliitto Group's total liquidity at the end of September was EUR
1.7 billion (31 December 2008: 1.8). Of this, EUR 0.5 billion (0.6)
was in liquid assets and investments, and EUR 1.2 billion (1.2) was
in off-balance-sheet binding credit facilities. In addition, the
Group can satisfy short-term financial needs with non-binding
commercial paper schemes in Finland and abroad, as well as with
credit limits amounting to approximately EUR 0.6 billion.
The Group's equity ratio in September was 23.9% and net gearing
totalled 180% (31 December 2008: 26.0% and 149%, respectively).
Interest-bearing net liabilities stood at EUR 2,363 million (31
December 2008: 2,666). The equity ratio of the parent company,
Metsäliitto Cooperative, was 55.7% at the end of September and the
net gearing ratio was 44% (31 December 2008: 54.6% and 45%,
respectively).
EUR 84.7 million of Metsäliitto Cooperative's members' capital
matured at the beginning of July. Members' capital has decreased by
EUR 58.8 million in January-September. The actual members' capital
has decreased by EUR 0.7 million and the additional capital A by EUR
58.9 million. The additional members' capital B has increased by EUR
0.8 million. At the end of September, Metsäliitto Cooperative had
127,118 members (31 December 2008: 129,267).
The change in the fair value of investments available for sale in
January-September was approximately EUR -101 million, based mainly on
the decrease in the value of the Pohjolan Voima shares. The change in
the fair value of the shares relates mainly to the decrease of the 12
month moving average value of Nord Pool electricity futures used in
the valuation.
Personnel
The Group employed an average of 15,560 people (17,759) during
January-September. At the end of September, the number of personnel
in the Group was 14,391 (31 December 2008: 16,729). The parent
company, Metsäliitto Cooperative, had a headcount of 2,917 at the end
of September (31 December 2008: 3,217).
Investments
Metsäliitto Group's capital expenditure totalled EUR 116 million
(190).
Business areas
Wood Supply
Wood Supply sales totalled EUR 809 million (1,372) in the review
period and operating result amounted to EUR 8 million (26). The
operating result does not include non-recurring items (1). Wood
Supply Finland accounted for EUR 608 million (936) of the sales and
EUR 5 million (21) of the operating result.
In Finland, wood trade was exceptionally slack, even though it picked
up slightly towards the end of the period. During January-September,
Metsäliitto bought around 40% of the amount purchased in the
corresponding period the year before. The forest industry's overall
January-September purchases from privately owned forests totalled
approximately 7.5 million cubic metres (29.4).
Metsäliitto's purchases have been emphasised on roundwood and forest
energy. In order to speed up roundwood trade, owner-members were paid
a double bonus on wood from sales of renewal stands marked for
cutting made between the beginning of August and the end of
September.
An organisational restructuring of the supply and delivery unit was
carried out in Northern Finland to adjust operations to decreased
delivery volumes of wood.
In the Russian market, the demand for softwood log exceeded the
supply, however, the demand for pulpwood remained low, except for
birch pulpwood. Wood supply at the Metsä-Botnia Svir Timber sawmill
was handled according to plans. Wood supplies from Russia to Finland
remained low.
In the Baltic countries, the wood trade of private forest owners was
at a standstill throughout the review period. Most of the wood was
felled from state-owned forests. Metsäliitto's deliveries to Finland
and Sweden decreased clearly, and the wood supply organisations were
adjusted to match the new volumes.
In January-September, Wood Supply's overall delivery volumes to
production units amounted to 18.3 million cubic metres (26.6).
As of the beginning of 2010, Metsäliitto Wood Supply will be
organised into four business lines: Wood Supply Finland,
International Wood Supply, Wood Energy and Forestry Services.
Wood Products Industry
The sales of Metsäliitto Wood Products Industry amounted to EUR 613
million (923), while the operating result was EUR -38 million (-19).
The operating result does not include non-recurring items.
The operating result for the third quarter was EUR 3 million
negative, yet noticeably better than for the previous quarters
(Q2/09: EUR -10 million and Q1/09: EUR -25 million). The decrease in
the operating loss is due to a decrease in the price of wood raw
material, increase in the price of sawn timber, a revival in the
demand for construction products and the implemented cost-saving
programmes.
During the third quarter, the construction market began to pick up
especially in the UK following government subsidies, low interest
rates and revival of the real estate business. The production
restrictions on sawn goods led to the price of sawn goods increasing
at the end of the review period. The market share in light and
cold-storage transport fleet could be increased with special
products.
As part of the development programme related to energy efficient
construction, Metsäliitto Wood Products Industry launched a new
Kerto-framed passive roof element and a base plate.
Due to the poor availability of competitively priced wood raw
material, summer shutdowns were continued at all operational
sawmills. Many sawmills had to restrict production even in September.
Pulp
Pulp industry sales were EUR 614 million (929) in January-September,
and the operating result excluding non-recurring items amounted to
EUR -125 million (72). The non-recurring items recognised in the
first quarter totalled EUR -75 million and were related to the
closure of the Kaskinen mill. The operating result including
non-recurring items was EUR -200 million (72).
The most significant factors burdening the result were the heavy
deterioration of the market situation and the decrease in the price
of pulp compared with the corresponding period the previous year.
Foreign currency-denominated market prices for softwood pulp were, on
average, 29% lower and for hardwood pulp 36% lower. The result was
also decreased by production curtailment shutdowns at all mills in
Finland.
Metsä-Botnia's result improved slightly compared to the previous
period. The operating loss for the third quarter was EUR 20 million,
while for the second quarter, operating loss was EUR 53 million.
The price of softwood pulp increased from USD 630 in June to USD 730
in September, and the price of hardwood pulp increased from USD 500
to USD 600.
Metsäliitto signed a letter of intent on 15 July 2009 concerning the
sale of Metsä-Botnia's operations in Uruguay to UPM-Kymmene
Corporation. The companies also agreed that UPM would reduce its
ownership in Metsä-Botnia to approximately 17%, with Metsäliitto
getting a majority share in the company. The existing cooperation
agreements will, for their essential parts, remain in effect without
changes even after the completed arrangement, and Metsä-Botnia will
continue to act as a sales channel for the market pulp of both UPM
and M-real.
M-real Group's financial statements include 30% of Pulp Industry's
figures. Of the Pulp Industry's figures, 53% are consolidated into
Metsäliitto Group's financial statements. Once the arrangement
according to the letter of intent announced in July becomes final,
the consolidation method of Metsä-Botnia will change. Metsä-Botnia
will become an associate in M-real's consolidated financial
statements and a subsidiary in Metsäliitto's consolidated financial
statements and will consequently be fully consolidated into the
Metsäliitto Group's figures. The transaction is expected to be closed
latest during the first quarter of 2010.
Metsä-Botnia has processed the operations in Uruguay as discontinued
operations in accordance with the IFRS 5 standard. The operations in
Uruguay are not included in the result figures presented above. The
operations in Uruguay have not been a separate segment in terms of
Metsäliitto Group. Therefore, only the items related to the balance
sheet of the operations in Uruguay have been reported as financial
assets and liabilities available for sale.
Board and Paper
The sales of Board and Paper totalled EUR 1,826 million (2,514), and
the operating result excluding non-recurring items was EUR -157
million (16).
M-real's net non-recurring items in January-September totalled EUR
-58 million (84). Of these, EUR 22 million were related to the
closure of the Metsä-Botnia Kaskinen mill, EUR 28 million to the
closure of the Hallein paper mill and EUR 8 million to various profit
improvement measures and cost provisions.
The operating result excluding non-recurring items decreased from
last year's corresponding period due to the drop in delivery volumes
following weaker demand, as well as the decrease in the values of
product, wood and pulp inventories. The result was improved by price
increases and cost savings.
The demand for consumer packaging board strengthened during the third
quarter, and the operating rates were at a good level. In addition,
the order volumes of uncoated fine paper improved during the third
quarter. The demand for speciality papers continues to be below the
normal level, but price level has mainly remained steady.
M-real's internal profit improvement programmes have proceeded
according to plans. The implemented streamlining measures and
decreases in production costs during
2009 help the company's profitability. The 2009 full-year result has
been weighed down by the considerable operational expenses incurred
from adjusting operations to a smaller scale and making them more
profitable.
The operating result including non-recurring items was EUR -215
million (100) in January-September. Net interest and other financial
expenses totalled EUR 59 million (108), results from associates were
EUR -14 million (-1) and net exchange gains/losses recognised as
financial items were EUR 4 million (2).
The financial income of the review period includes a profit of about
EUR 31 million from repurchases of a EUR 400 million bond due in
December 2010. A loss of approximately EUR -30 million has been
booked in the financing expenses due to the premature repayment of
the bond issued to Sappi. Results from associates include a EUR 11
million non-recurring expense item related to the sale of Myllykoski
Paper's Sunila shares.
The result before tax was EUR -284 million (-7), earnings per share
were EUR -0.83 (-0.05) and return on capital employed was -8.5%
(4.9). Excluding non-recurring items, the result before taxes was EUR
-215 million (-91), earnings per share were EUR -0.64 (-0.31) and the
return on capital employed was -5.6% (1.3).
At the end of September, M-real's equity ratio was 28.5 % and net
gearing amounted to 121% (31 December 2008: 30.8% and 90%,
respectively). Some of M-real's loan agreements set a 120% limit on
the company's net gearing ratio and a 30% limit on the equity ratio.
At the end of September, net gearing calculated as defined in the
loan agreements was approximately 94% and the equity ratio about 34%.
Tissue and Cooking Papers
The January-September sales of Metsä Tissue, which produces tissue
and cooking papers, totalled EUR 661 million (695), and its operating
result was EUR 72 million (33).
Sales were down some five per cent year-over-year. The decrease in
sales was due to changes in exchange rates (-5%) and lower sales
volumes (-2%). Metsä Tissue's cash flow development and liquidity are
good.
The volumes of the company's own brands increased compared to the
previous year. The development of Serla's sales in particular
continued to be strong. Sales volumes of large-scale consumer
operations improved during the third quarter, which is due, for
instance, to the increased demand for hygiene products along with the
spread of the H1N1 virus.
Metsä Tissue has invested in three new napkin machines and associated
printing and packaging lines. The machines can produce both
single-colour and high-class patterned napkins. The investment also
enables increasingly flexible and reliable deliveries.
Baking and cooking products will be sold and marketed under the SAGA
brand in the future. In addition a Swan-environmental-labelled toilet
tissue for sensitive skin, Herbal Sensitive, was launched in Finland
during the third quarter. A new four-ply Lambi Aloe Vera product with
balm was launched in the Eastern European market.
Metsä Tissue has been streamlining its business and organisation
during the autumn by moving from five business lines to three. After
the reorganisations, the lines are Consumer, Away-from-Home and
Baking & Cooking.
Risks and uncertainties
The estimates and statements in this interim report are based on
current plans and estimates. They involve risks and uncertainties
that may cause the results to differ from those expressed in such
statements. The risks related to the Group's business have been
explained more extensively in Metsäliitto Group's Annual report for
2008.
New ownership structure of Metsä-Botnia
Metsäliitto and UPM-Kymmene Corporation signed a letter of intent on
15 July 2009 concerning the sale of Metsä-Botnia's Uruguayan
operations to UPM. The companies also agreed that UPM would reduce
its ownership in Metsä-Botnia to approximately 17%, with Metsäliitto
getting a majority share in the company. Among other things, the
letter of intent includes Metsäliitto Group's shares in the Fray
Bentos pulp mill and in Forestal Oriental, a company specialised in
the cultivation of eucalyptus.
Following the arrangement, Metsäliitto Cooperative will own about 53%
of Metsä-Botnia, M-real around 30% and UPM around 17%. Currently,
Metsäliitto Cooperative has a 23%, M-real a 30% and UPM a 47% holding
in Metsä-Botnia.
A definitive agreement still requires the Boards of both parties to
approve it, negotiations with financing parties to be concluded and
the competition authorities to give their approval. The transaction
is expected to be closed latest during the first quarter of 2010.
Metsäliitto, M-real and UPM published stock exchange releases about
the letter of intent on 15 July 2009. The Boards of the parties
signed the actual agreement on 22 October 2009. A detailed stock
exchange release about the arrangement has been published today.
Near-term outlook
Wood trade is expected to pick up towards the end of the year. In
Finland, the demand for logging sites predominated by roundwood,
forest energy and thinning areas providing summer harvesting
continues to be good. The demand for pulpwood will increase,
particularly in terms of birch pulpwood.
With regard to Wood Products Industry, there are signs of a revival
in the construction market, which is reflected as an increase in the
demand for engineered wood products. Nevertheless, sawn goods
production must be restricted if availability of wood raw material
that is competitive in terms of price is not sufficient. The demand
for plywood is not expected to improve significantly.
Globally, pulp stocks remained low during the third quarter, and
there were even local shortages of hardwood pulp. Pulp prices
continue to increase in October. However, the strong support measures
by the United States and Canada for their own pulp industries are
casting a shadow over the near-term market outlook. This results in
reopening of closed mills and offers a competitive advantage.
M-real's third quarter was clearly better than the first half of the
year. The fourth quarter is also expected to be noticeably better
than the first half of the year in terms of profitability. Due to the
weak result for the first six months, M-real's operating result for
2009 as a whole excluding non-recurring items will remain clearly
below the year before.
The average demand for tissue and cooking papers is expected to
remain rather stable. Sales of own brands in particular are expected
to continue to grow. However, raw material prices and transport costs
are expected to continue to increase. After the recent years'
significant streamlining measures, growth is now pursued from various
development projects.
Metsäliitto Group's operating result excluding non-recurring items in
the third quarter improved significantly compared to the previous
quarters of the year. The positive profit development will continue,
but mainly for seasonal reasons, the operating result for the fourth
quarter is estimated to fall below third-quarter levels. Metsäliitto
Group's 2009 operating result excluding non-recurring items will be
clearly weaker than last year.
Espoo, 22 October 2009
Metsäliitto Group
Board of Directors
Further information:
Ilkka Pitkänen, Group CFO, Metsäliitto Group, tel. +358 10 465 4260
Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541
The figures are unaudited
METSÄLIITTO GROUP
Condensed consolidated 2009 2008 2009 2008 2008
statement 1-9 1-9 Change Q3 Q3 1-12
of comprehensive income
Continuing operations
Sales 3 647 4 981 -1 334 1 155 1 595 6 434
Other operating income 115 215 -100 31 43 239
Operating expenses -3 672 -4 702 1 030 -1 103 -1 524 -6 189
Depreciation and impairment -277 -286 9 -76 -95 -482
losses
Operating result -186 208 -394 7 19 2
Share of results in -11 11 -23 -1 8 6
associated companies
Exchange gains and losses 1 1 0 4 0 19
Other net financial items -113 -176 63 -63 -63 -260
Result before income tax -310 44 -355 -53 -35 -233
Income tax 19 -6 25 -6 2 60
Result for the period
from continuing operations -291 39 -330 -59 -33 -172
Discontinued operations
Result from discontinued -15 -276 261 -2 -212 -338
operations
Result for the period -306 -237 -69 -61 -245 -511
Other comprehensive income
Cash flow hedges 24 -11 35 10 -31 -55
Available for sale -101 76 -177 27 5 97
financial assets
Currency translation -25 19 -43 -22 16 13
differences
Other items 0 0 0 0 -1 -1
Income tax relating to
components 23 -16 39 -8 12 -16
of other comprehensive
income
Other comprehensive income,
net of tax -78 68 -146 7 1 39
Total comprehensive income
for the period -384 -170 -214 -55 -244 -472
Result attributable to:
Members of parent company -140 -73 -67 -20 -92 -213
Minority interest -166 -164 -2 -41 -153 -297
-306 -237 -69 -61 -245 -511
Total comprehensive income
attributable to:
Members of parent company
Result attributable to: -178 -40 -138 -22 -91 -199
Minority interest -206 -130 -76 -33 -154 -272
-384 -170 -214 -55 -244 -472
Unaudited
Condensed consolidated balance sheet 2009 2008 2008
30.9. 30.9. 31.12.
ASSETS
Non-current
Goodwill 168 219 176
Other intangible assets 73 101 88
Tangible assets 2 110 3 047 2 958
Biological assets 5 95 103
Investments in associated companies 101 144 139
Available for sale investments 355 443 493
Non-current financial assets 10 23 234
Deferred tax receivables 70 53 61 2 892 4 125 4 252
Current
Inventories 619 1 020 943
Accounts receivables and other receivables 800 1 176 1 085
Cash and cash equivalents 470 218 619
1 889 2 414 2 647
Assets classified as held for sale 722 1 065 -
Total assets 5 503 7 605 6 899
MEMBERS' FUNDS AND LIABILITIES
Members' funds
Members' funds 834 1 247 1 104
Minority interest 478 837 682
1 312 2 085 1 786
Non-current liabilities
Deferred tax liabilities 258 391 328
Post-employment benefit obligations 124 136 131
Provisions 82 50 111
Borrowings 2 373 2 809 2 854
Other liabilities 16 22 26
2 852 3 408 3 449
Current liabilities
Current borrowings 327 673 690
Accounts payable and other liabilities 776 1 034 974
1 103 1 706 1 664
Liabilities classified as held for sale 235 406 -
Total liabilities 4 191 5 520 5 113
Total members' funds and liabilities 5 503 7 605 6 899
Unaudited
Equity attributable to members of parent company
Change in Fair
members' Tran- value Re-
funds Mem- Share slation and tained Minor-
bers' premium differ- other earn- ity
EUR mill. capital account ences reserves ings Total interest Total
Members' 574 30 -7 148 583 1 328 978 2 306
funds
1.1.2008
Dividends -36 -36 -13 -50
paid
Change in -5 -5 -5
members'
capital
Change in 0 0
share premium
account
Change in 0 0
fair value
reserve
Transfer from
unrestricted 6 -6 0 0
to restricted
equity
Business 0 3 3
arrangements
Total
comprehensive 12 21 -73 -40 -130 -170
income
for the
period
Members' 570 30 5 175 468 1 247 837 2 085
funds
30.9.2008
Members' 585 30 -5 165 329 1 104 682 1 786
funds
1.1.2009
Dividends -34 -34 -1 -35
paid
Change in -59 -59 -59
members'
capital
Change in 0 0
share premium
account
Change in 0 0
fair value
reserve
Transfer from
unrestricted 0 0
to restricted
equity
Business 2 -2 0 4 4
arrangements
Total
comprehensive -13 -25 -140 -178 -206 -384
income
for the
period
Members' 526 30 -15 138 155 834 478 1 312
funds
30.9.2009
Unaudited
Condensed consolidated cash flow statement 2009 2008 2008
1-9 1-9 1-12
Result for the period -306 -237 -511
Total adjustments 339 549 832
Change in working capital 173 -89 88
Cash flow arising from operations 206 223 410
Net financial items -9 -150 -239
Income taxes paid 6 -57 -58
Net cash flow arising from operating activities 204 16 113
Investments in tangible and
intangible assets -116 -190 -272
Divestments of assets and other 346 170 511
Net cash flow arising from investing activities 229 -20 239
Change in members' funds -59 -2 -1
Change in long-term loans
and other financial items -438 -146 -101
Dividends paid -40 -55 -55
Net cash flow arising from financing activities -536 -203 -157
Changes in cash and cash equivalents -103 -206 195
Cash and cash equivalents at beginning of period 619 428 428
Translation difference -1 0 -4
Changes in cash and cash equivalents -103 -206 195
Cash and cash equivalents
in assets classified as held for sale -45 -3 -
Cash and cash equivalents at end of period 470 218 619
Unaudited
BUSINESS SEGMENTS
Wood Supply 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 809 1 372 232 412 1 734
EBITDA 11 30 0 5 35
- " -, excl. non-recurring items 11 29 0 6 33
Depreciation and impairment -3 -4 -1 -1 -5
Operating result 8 26 -1 4 30
- " -, excl. non-recurring items 8 25 -1 5 28
Investments 1 4 1 1 4
Personnel at end of period 951 1 260 951 1 260 1 140
Wood Products Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 613 923 188 279 1 162
EBITDA -9 13 7 -6 -18
- " -, excl. non-recurring items -9 13 7 -6 -11
Depreciation and impairment -29 -32 -10 -11 -57
Operating result -38 -19 -3 -16 -74
- " -, excl. non-recurring items -38 -19 -3 -16 -53
Investments 7 29 4 13 36
Personnel at end of period 3 804 4 298 3 804 4 298 4 199
Pulp Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 898 1 232 313 421 1 591
EBITDA -13 324 25 136 347
- " -, excl. non-recurring items 5 324 25 136 347
Depreciation and impairment -149 -103 -23 -34 -138
Operating result -162 221 2 102 209
- " -, excl. non-recurring items -87 221 2 102 209
Investments 45 78 26 34 99
Personnel at end of period 1 633 1 873 1 633 1 873 1 815
The Metsäliitto Group consolidates 53% of the Pulp Industry
(M-real 30% and Metsäliitto Cooperative 23%).
Board and Paper Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 1 826 2 514 618 826 3 236
EBITDA -44 272 27 49 254
- " -, excl. non-recurring items -7 188 26 60 192
Depreciation and impairment -171 -172 -50 -57 -315
Operating result -215 100 -24 -8 -61
- " -, excl. non-recurring items -157 16 -22 3 -35
Investments 55 89 23 38 128
Personnel at end of period 5 649 6 679 5 649 6 679 6 546
Unaudited
Tissue and Cooking Papers 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 661 695 226 235 930
EBITDA 103 74 42 26 98
- " -, excl. non-recurring items 103 75 42 27 99
Depreciation and impairment -31 -42 -11 -13 -56
Operating result 72 33 31 13 42
- " -, excl. non-recurring items 72 34 31 14 44
Investments 18 17 8 7 33
Personnel at end of period 3 216 3 245 3 216 3 245 3 222
Other operations 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 167 228 3 60 315
EBITDA 22 25 0 8 29
- " -, excl. non-recurring items 22 19 0 3 24
Depreciation and impairment -10 -15 0 -5 -20
Operating result 13 10 0 3 9
- " -, excl. non-recurring items 13 4 0 -3 4
Investments 24 33 1 13 48
Personnel at end of period 395 1 292 395 1 292 1 204
Other operations include Vapo Group (49,9%) until end of June 2009
and Metsäliitto's service and holding functions.
Internal sales
and eliminations 1-9/09 1-9/08 Q3/09 Q3/08 QI-IV/08
Sales -1 327 -1 984 -425 -637 -2 534
EBITDA 20 -243 -16 -105 -261
- " -, excl. non-recurring items -1 -242 -16 -105 -259
Depreciation and impairment 116 81 18 27 109
Operating result 136 -162 2 -78 -152
- " -, excl. non-recurring items 71 -161 3 -78 -150
Metsäliitto Group 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08
Sales 3 647 4 981 1 155 1 595 6 434
EBITDA 90 494 83 114 484
- " -, excl. non-recurring items 124 407 84 122 425
Depreciation and impairment -277 -286 -76 -95 -482
Operating result -186 208 7 19 2
- " -, excl. non-recurring items -119 120 9 27 45
Investments 116 190 42 80 272
Personnel at end of period 14 391 17 205 14 391 17 205 16 729
EBITDA = Operating result before depreciation and impairment losses.
Unaudited
Quarterly data 2009 2009 2009 2008 2008 2008 2008
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Sales
Wood Supply 232 251 327 362 412 474 487
Wood Products Industry 188 224 202 239 279 329 315
Pulp Industry 313 282 303 359 421 413 398
Board and Paper Industry 618 585 623 722 826 829 859
Tissue and Cooking Papers 226 217 218 234 235 231 230
Other operations 3 73 90 87 60 77 91
Internal sales and -425 -418 -485 -550 -637 -677 -670
eliminations
Group sales 1 155 1 213 1 278 1 453 1 595 1 676 1 710
Operating result
Wood Supply -1 4 5 4 4 12 10
Wood Products Industry -3 -10 -25 -55 -16 -1 -2
Pulp Industry 2 -42 -122 -13 102 44 75
Board and Paper Industry -24 -73 -117 -161 -8 71 37
Tissue and Cooking Papers 31 22 19 10 13 11 9
Other operations 0 3 10 -1 3 1 6
Elimineringar 2 40 94 10 -78 -32 -52
Group operating result 7 -56 -137 -206 19 105 84
- % of sales 0.6 -4.6 -10.7 -14.2 1.2 6.3 4.9
Share of results in
associated companies -1 -8 -2 -6 8 2 2
Exchange gains and losses 4 -1 -2 18 0 -2 2
Other net financial items -63 -30 -20 -84 -63 -51 -62
Result before income tax -53 -95 -163 -277 -35 54 26
Income tax -6 7 19 66 2 -1 -7
Result for the period from
continuing operations -59 -88 -144 -211 -33 53 19
Result from
discontinued operations -2 -3 -10 -62 -212 -45 -19
Result for the period -61 -91 -153 -273 -245 8 0
Unaudited
Change in tangible assets 1-9/09 1-9/08 1-12/08
Book value at beginning of period 2 958 4 021 4 021
Company acquisitions 1 4 4
Investments 105 180 255
Decrease -256 -99 -686
Assets classified as held for sale -434 -646 -
Depreciation and impairment charges -262 -268 -438
- " - , discontinued operations - -149 -149
Translation differences and other changes -2 4 -49
Book value at end of period 2 110 3 047 2 958
In 2009 Assets classified as held for sale include the tangible
assets of Metsä-Botnia's operations in Uruguay and in 2008 the
tangible assets of M-real's Graphic Papers business.
In 2008 Depreciation and impairment charges of discontinued
operations include the depreciation and impairment charges of the
Graphic Papers business.
Commitments Q3/09 Q3/08 Q4/08
On own behalf (incl. leasing liabilities) 344 317 318
On behalf of associated companies 5 3 3
On behalf of others 6 2 4
Total 354 322 325
Commitments related to fixed assets Q3/09 Q3/08 Q4/08
Payments due under 1 year 8 0 0
Payments due in subsequent years 3 1 1
Open derivative contracts Q3/09 Q3/08 Q4/08
Interest rate derivatives 974 1 527 1 158
Currency derivatives 2 010 2 607 2 346
Other derivatives 379 253 232
Total 3 363 4 387 3 735
The market value of open derivative contracts at the end of the
review period was EUR -45 million (12/08: EUR 33 million). Open
derivative contracts also include closed contracts to a total amount
of EUR 668 million (12/08: EUR 787 million).
Accounting policies
The Financial Statements Bulletin was prepared in accordance with the
IAS 34 standard Interim Financial Reporting and the accounting
policies presented in Metsäliitto Group's Annual Report.
The Group has adopted the following standards from the beginning of
2009:
IAS 1 (Revised), 'Presentation of Financial Statements'. The revised
standard is aimed at improving users' ability to analyse and compare
the information given in financial statements by separating changes
in equity of an entity arising from transactions with owners from
other changes in equity. Non-owner changes in equity are presented in
the statement of comprehensive income.
IFRS 8, 'Operating Segments'. The new standard replaces IAS 14. The
new standard requires a 'management approach', under which segment
information is presented on the same basis as that used for internal
reporting purposes. The segments reported by the Group as from Jan 1,
2009 are Wood Supply, Wood Products Industry, Pulp Industry, Board
and Paper Industry, Tissue and Cooking Papers and Other operations.
The figures for the comparative periods have been changed according
to the new segments.
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