2007-07-26 10:45:55 CEST
2007-07-26 10:45:55 CEST
REGULATED INFORMATION
M-real - Quarterly report
M-real s operating result excluding non-recurring itemms in the second quarter was EUR 4 million
M-real Corporation Stock Exchange Release 26.7.2007
Result for the second quarter of 2007
* Sales were EUR 1,360 million (Q1/07: 1,432). Sales decreased
following the divestments and capacity closures
* Operating result excluding non-recurring items was EUR 4 million
(Q1/07: 31). Operating result including non-recurring items was
EUR -9 million (Q1/07: 104)
* Result before taxes, excluding non-recurring items, was EUR -29
million
(Q1/07: -15). Result before taxes, including non-recurring items,
was EUR -42 million (Q1/07: 58). The result was negatively
affected by scheduled maintenance shutdowns as well as limited
availability and high price of wood
Result for the first six months of 2007
* Sales were EUR 2,792 million (Q1-Q2/06: 2,819)
* Operating result excluding non-recurring items was EUR 35 million
(Q1-Q2/06: 14) Operating result including non-recurring items was
EUR 95 million (Q1-Q2/06: -40)
* Result before taxes excluding non-recurring items was EUR -44
million
(Q1-Q2/06: -41)
Events in the second quarter
* The folding carton plants in Finland and Hungary were divested at
the turn of May and June. The debt-free value of the divestments
was approximately EUR 35 million. A loss of approximately EUR 2
million from the transactions was booked in the second-quarter
result.
* A decision was made to close down paperboard machine line No. 2
at the Tako board mill in Tampere by the end of July. Production
will be transferred to M-real's other board machines in Finland.
* Pulp production was curtailed due to large scheduled maintenance
shutdowns and limited availability of wood."Our restructuring programme, including the additional measures
taken, is progressing well but its results have been diluted by the
exceptionally difficult wood supply situation. While positive
development has been seen in the market prices of office paper and
paperboard, the situation in other grades remains unsatisfactory. Our
strategic choice to withdraw from the paper merchanting business by
selling Map Merchant Group will further enhance our cooperation with
select paper merchants and also support our objective to reduce
debt."
Mikko Helander, CEO, M-real Corporation
KEY FIGURES Q2/07 Q1/07 Q2/06 Q1-Q2/07 Q1-Q2/06 2006
Sales, MEUR 1,360 1,432 1,378 2,792 2,819 5,624
EBITDA, MEUR 73 201 17 274 145 299
excl. non-recurring
items, MEUR 84 112 71 196 199 411
Operating result, MEUR -9 104 -75 95 -40 -271
excl. non-recurring
items, MEUR 4 31 -21 35 14 45
Result before taxes,
MEUR -42 58 -111 16 -95 -408
excl. non-recurring
items, MEUR -29 -15 -57 -44 -41 -92
Result for the period,
MEUR -49 54 -103 5 -100 -399
Earnings per share, EUR -0.15 0.16 -0.31 0.01 -0.30 -1.21
Return on equity, % -10.4 11.2 -18.3 0.5 -8.9 -18.9
excl. non-recurring
items, % -8.8 -5.4 -9.1 -7.2 -4.3 -4.4
Return on capital
employed, % -0.5 9.6 -5.6 4.6 -1.1 -5.2
excl. non-recurring
items, % 0.7 3.2 -1.2 2.0 1.1 1.4
Equity ratio at end of
period, % 32.8 32.9 35.0 32.8 35.0 30.9
Gearing ratio at end of
period, % 117 114 108 117 108 126
Interest-bearing net
liabilities
at end of period, MEUR 2,192 2,189 2,381 2,192 2,381 2,403
Gross investments, MEUR 62 50 101 112 204 428
Paper deliveries,
1,000 tonnes 965 1,029 1,040 1,994 2,120 4,192
Paperboard deliveries,
1,000 tonnes 313 302 284 615 588 1,161
Personnel at end of
period 13,302 13,538 15,277 13,302 15,277 14,125
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Market situation
Deliveries made by Western European coated fine paper producers in
January-June were on last year's level. Coated magazine paper and
uncoated fine paper deliveries decreased marginally. In Europe, the
market price of coated magazine paper has slightly decreased, while
market price of coated fine paper has not changed significantly. The
price of uncoated fine paper has continued to increase.
Folding boxboard deliveries by Western European producers increased
from last year's level.
Result for April-June compared to the previous quarter
Sales totalled to EUR 1,360 million (Q1/07: 1,432). Comparable sales
decreased by 4.8 per cent.
Operating result totalled EUR -9 million (Q1/07: 104). It includes,
as non-recurring costs, EUR 9 million in cost provisions and EUR 2
million in asset write-downs related to the profitability improvement
programme in Finland. These figures include the closedown expenses
incurred from paperboard machine line No. 2 at the Tako board mill.
The operating result also includes a loss on sale of EUR 2 million
from the divestment of the carton plants in Finland and Hungary.
The first-quarter operating result included a non-recurring income of
EUR 135 million from the sale of Metsä-Botnia's shares to Metsäliitto
Cooperative. The operating result included a total of EUR 62 million
in non-recurring costs, the most significant items being:
* a cost provision of EUR 14 million for completing the closedown
of the Sittingbourne mill
* a cost provision of EUR 29 million for completing the closedown
of the Wifsta mill
* an impairment loss of EUR 16 million from the valuation of assets
held for sale at the expected selling price in compliance with
IFRS 5.
Net non-recurring items in the second quarter of 2007 totalled EUR
-13 million (Q1/07: 73).
Operating result excluding non-recurring items totalled EUR 4 million
(31). It was negatively affected by scheduled maintenance shutdowns,
Easter and Midsummer shutdowns, limited availability of wood, further
increases in wood prices and the drop in the average selling price of
coated magazine paper from the previous quarter. The result benefited
from the approximately 3 per cent increase in the price of uncoated
fine paper.
In April-June the volume of paper deliveries totalled 965,000 tonnes
(Q1/07: 1,029,000). Production was curtailed by 50,000 tonnes
(41,000) in line with demand. Paperboard deliveries totalled 313,000
tonnes (302,000) and production curtailments 31,000 tonnes (17,000).
Financial income and expenses totalled EUR -32 million (-46).
Exchange differences from trade receivables, trade payables,
financial items and the valuation of currency hedging were EUR 2
million (-5). Net interest and other financial expenses amounted to
EUR -34 million (-41). Other financial expenses include a profit of
EUR 7 million (-1) from unwinding and valuation of interest rate
hedges.
The result before taxes for the review period was EUR -42 million
(58). The result before taxes, excluding non-recurring items,
totalled EUR -29 million (-15). The negative impact of income taxes,
including the change in deferred tax liabilities, was EUR 7 million
(4).
Earnings per share were EUR -0.15 (0.16). Excluding non-recurring
items, earnings per share were EUR -0.13 (-0.08). Return on equity
was -10.4 per cent (11.2), and -8.8 per cent (-5.4) excluding
non-recurring items. The return on capital employed was -0.5 per cent
(9.6), and 0.7 per cent (3.2) excluding non-recurring items.
Result for January-June compared with the corresponding period last
year
Sales totalled EUR 2,792 million (Q1-Q2/06: 2,819). Comparable sales
were up 1.7 per cent.
Operating result was EUR 95 million (-40). The operating result
excluding non-recurring items amounted to EUR 35 million (14). Net
non-recurring items in January-June 2007 totalled EUR 60 million, the
most significant being:
* sales gain of EUR 135 million from Metsä-Botnia shares
* a cost provision of EUR 14 million for completing the closedown
of the Sittingbourne mill
* a cost provision of EUR 29 million for completing the closedown
of the Wifsta mill
* an impairment loss of EUR 16 million from the valuation of assets
held for sale at the expected selling price in compliance with
IFRS 5
* a total of EUR 11 million consisting of a cost provision and
asset write-downs related to the programme to improve
profitability of operations in Finland.
Non-recurring items in January-June 2006 totalled EUR 54 million, the
most significant being:
* a sales loss of EUR 35 million for the Pont Sainte Maxence paper
mill
* a cost provision totalling EUR 19 million related to the
efficiency improvement programmes at the Alizay, Stockstadt and
Hallein mills.
The profitability of Consumer Packaging, fine papers and merchant
operations improved due to positive price development and
profitability improvement measures. Despite the profitability
improvement measures taken, the profitability of the Publishing
business area dropped due to a weak US dollar and negative price
development. Operating result excluding non-recurring items improved
year on year, helped by the approximately 9 per cent price increase
of uncoated fine paper and the profitability improvement measures
taken. Factors with a negative effect on the operating result
included the average drop of 8 per cent in the value of the US
dollar, the increase in the price of pulpwood, production losses at
pulp mills due to the weak availability of wood, as well as extensive
maintenance shutdowns in Alizay and Husum pulp mills. Performance in
January-June 2006 suffered from the maintenance and investment
shutdown in Alizay and the investment shutdown at the Simpele
paperboard mill.
The volume of paper deliveries in January-June totalled 1,994,000
tonnes (2,120,000). Production was curtailed by 91,000 tonnes in line
with demand (99,000). Paperboard deliveries amounted to 615,000
tonnes (588,000) and production curtailments to 48,000 tonnes
(31,000).
Financial income and expenses totalled EUR -78 million (-54).
Exchange differences from trade receivables, trade payables,
financial items and the valuation of currency hedging were EUR -3
million (5). Net interest and other financial expenses amounted to
EUR -75 million (-59). Other financial expenses include profit of EUR
6 million (7) from unwinding and valuation of interest rate hedges.
The result before taxes was EUR 16 million (-95). The result before
taxes, excluding non-recurring items, totalled EUR -44 million (-41).
Income taxes, including the change in deferred tax liabilities, were
EUR -11 million (-5).
Earnings per share were EUR 0.01 (-0.30). Excluding non-recurring
items, earnings per share were EUR -0.21 (-0.15). Return on equity
was 0.5 per cent (-8.9), and -7.2 per cent (-4.3) excluding
non-recurring items. The return on capital employed was 4.6 per cent
(-1.1), and 2.0 per cent (1.1) excluding non-recurring items.
Personnel
On 30 June 2007 the company had 13,302 employees (31 December 2006:
14,125), of which 4,243 (4,220) worked in Finland. Divestments
accounted for a reduction of 678 employees in 2007. The company had
approximately 400 summer employees at the end of June. In
January-June M-real employed an average of 13,610 people (Q1-Q2/06:
15,207). In 2007 the figures include 30 per cent of Metsä-Botnia's
personnel compared to 39 per cent in 2006.
Investments
Gross capital expenditure in January-June totalled EUR 112 million
(Q1-Q2/06: 204). This includes a EUR 72 million share of
Metsä-Botnia's capital expenditure (90), based on
M-real's ownership, which in 2007 amounted to 30 per cent and in 2006
to 39 per cent.
Metsä-Botnia's pulp mill investment in Uruguay is progressing as
planned, and the mill will be ready for start-up in September. As the
new mill will start up, M-real will gain self-sufficiency in pulp, in
line with its strategy. The Uruguay mill will be one of the world's
most cost-efficient chemical pulp mills.
Divestments and restructuring
On 30 January 2007 M-real sold 9 per cent of Metsä-Botnia's shares to
Metsäliitto Cooperative for EUR 240 million posting a gain of EUR 135
million.
In the turn of May and June M-real sold all the shares in its
subsidiaries Tako Carton Plant Ltd. to Pyroll Oy and M-real Petöfi
Nyomda Kft to the German STI Group. The total debt-free value of the
divestment of these carton plants located in Finland and Hungary was
approximately EUR 35 million. A loss of approximately EUR 2 million
from the transactions was booked in the second-quarter result.
Excluding non-recurring items, the transactions will have a slightly
negative impact on the operating result in 2007 and will lead to a
decrease of approximately EUR 55 million in annual sales.
The divestments were part of M-real's restructuring programme
announced in October 2006.
Financing
At the end of June the equity ratio was 32.8 per cent (31 December
2006: 30.9) and the gearing ratio 117 per cent (126). Some of
M-real's loan agreements set a 120 per cent limit on the company's
gearing ratio and a 30 per cent limit on the equity ratio. Calculated
as defined in the loan agreements, the gearing ratio at the end of
June was approximately 102 per cent (111) and the equity ratio
approximately 36 per cent (34).
Net interest-bearing liabilities totalled EUR 2,192 million at the
end of June (2,403). 12 per cent of the long-term loans were
denominated in foreign currencies. 77 per cent of the loans were
floating-rate and the rest fixed-rate. At the end of June the average
interest rate on loans was 6.8 per cent and the average maturity of
long-term loans 3.8 years. The interest rate maturity of loans was
7.2 months at the end of June. During the period it varied from 7 to
8 months.
Cash flow from operations in January-June amounted to EUR 132 million
(Q1-Q2/06: 106). Working capital was up by EUR 18 million (57).
At the end of June, an average of 6 months of net foreign exchange
exposure was hedged. The degree of hedging varied between 6 and 7
months during the period. At the end of June, approximately 97 per
cent of foreign-currency-denominated shareholders' equity was hedged.
Liquidity is good. At the end of June liquidity was EUR 1,329
million, of which EUR 1,155 million consisted of binding long-term
credit agreements and EUR 174 million of liquid assets and
investments. To meet its short-term financing needs, M-real also had
non-binding domestic and foreign commercial paper programmes and
credit facilities amounting to nearly EUR 600 million.
Shares
In January-June, the highest price of M-real's B share on the OMX
Helsinki Stock Exchange was EUR 5.94, the lowest EUR 4.43 and the
average price EUR 5.18. At the end of June the price of the B share
was EUR 4.85. The average price in 2006 was EUR 4.41. The closing
price for 2006 was EUR 4.79.
The trading volume of B shares was EUR 1,327 million, or 88 per cent
of the share capital. The market value of the A and B shares totalled
EUR 1,590 million at the end of June.
Metsäliitto Cooperative owned 38.6 per cent of the shares at the end
of June and held 60.5 per cent of the voting rights conferred by
these shares. International investors owned 41.3 per cent of the
shares.
On 13 March 2007 the Annual General Meeting authorised the Board of
Directors to decide on increasing the share capital through one or
more share issues and/or one or more issues of convertible bonds in
compliance with Chapter 10 of the Companies Act so that in either
case a maximum of 58,365,212 of M-real Corporation's B shares with a
nominal value of EUR 1.70 can be subscribed for and the company's
share capital can be increased by a maximum of EUR 99,220,860.40. The
authorisation, valid until further notice, entitles a deviation from
the shareholders' pre-emptive right to subscribe for new shares
and/or issues of convertible bonds and to decide on the subscription
prices and other terms and conditions. The shareholders' pre-emptive
subscription rights can be deviated from provided that there is a
significant financial reason for the company to do so, such as
strengthening the balance sheet, enabling business restructuring or
developing the company's business in other ways.
Antitrust class actions
In connection with the investigations of the EU Commission regarding
fine and magazine paper, which were closed in 2006, purchasers of
magazine paper filed several class action lawsuits in the United
States naming M-real as a defendant along with other paper producers.
In May 2007 the plaintiffs of the last pending class action filed a
notice dismissing the lawsuit against M-real without prejudice.
Strategic review and related measures
The restructuring programme launched in October 2006 and extended in
2007 proceeds as planned. Measures to achieve cost savings by EUR 100
million and reduce working capital by EUR 100 million have been
defined and their implementation is ongoing. In January 2007 M-real
sold a 9 per cent holding in Metsä-Botnia to Metsäliitto Cooperative
for EUR 240 million, posting a gain of EUR 135 million. M-real also
sold the Tako and Petöfi carton plants for a total of EUR 35 million
at the turn of May and June. The sales process of the Meulemans
carton plant continues. The divestment of the Map Merchant Group for
EUR 382 million was announced in early July. The deal is subject to
approval by the competition authorities. After the transaction has
been finalised, M-real will have sold asset items worth over EUR 650
million, exceeding its original target of EUR 500 million.
The Sittingbourne fine paper mill in the UK was closed down at the
end of January, and fine paper machines 6 and 7 at Gohrsmühle,
Germany, in late February. The Wifsta fine paper mill in Sweden was
closed down in July. Around one-third of the production of the
machines now closed has been transferred to M-real's other machines.
Related to the closures, EUR 76 million was recognised as an expense
in the 2006 financial statements and a cost provision of EUR 43
million was booked in the first quarter of 2007 for the completion of
closures. The closures' impact on cash flow is approximately EUR -80
million, slightly over half of which will be realised in 2007 and the
rest in 2008-2015.
The statutory negotiations related to the programme to improve
profitability of operations in Finland have been concluded. The
programme's overall impact on staff is approximately 500 person work
years. The talks also agreed on changes in vacancies and on other
enhancement measures, which will decrease the need for temporary
employees and holiday replacements by approximately 100 person work
years. Previous measures and those now agreed on will result in
annual cost savings of approximately EUR 40 million in Finnish
operations. They will have full effect from the beginning of 2009.
The non-recurring expenses resulting from the programme, totalling
approximately EUR 11 million, were recognised in the second quarter.
The amount includes an asset write-down of approximately EUR 2
million. Paperboard machine line 2 at the Tako board mill, with an
annual capacity of 70,000 tonnes, will be closed down by 31 July
2007, as previously announced. Production will primarily be
transferred to other machines in the Consumer Packaging business.
Events after the period
As part of the strategic review M-real made an essential decision
concerning the distribution of its own products. On 6 July 2007, as
part of its new distribution strategy, M-real announced its plans to
sell Map Merchant Holdings BV and its subsidiaries to the French
Antalis Intenational SAS. The goal is to enhance cooperation with
select European paper merchants. The total value of the transaction,
including possible debt and pension liabilities, is EUR 382 million.
M-real expects to recognise a gain of approximately EUR 80 million in
the figures for the quarter in which the sale is closed. The deal
will not affect
M-real's result before taxes, except for the non-recurring profit
impact of the closed sale. Gearing is estimated to decrease as a
result of the divestment by 21 percentage points. The transaction is
subject to authority approval and is expected to be finalised in the
third quarter of 2007.
In May M-real announced that it would exercise its purchase option
for the Kyröskoski gas combi power plant and the land on which the
Kyröskoski mills are located. The transaction, worth approximately
EUR 13 million, was carried out on 1 July 2007 in compliance with the
terms and conditions of the purchase option agreement.
Wood supply
The exceptionally mild winter in Northern Europe has caused temporary
difficulties in wood supply. The winter season was nearly one-third
shorter than normal, leading to challenges in wood procurement at the
Finnish and Swedish mills due to harvesting problems. Stocks were at
a clearly lower level than usual. The price of wood is expected to
remain high. In central Europe, however, the high prices resulting
from more and more wood being used for energy production have seen a
slight downward trend recently. Storm damage and the decrease in
energy wood purchases caused by the mild winter contribute to this
price development.
Wood procurement was also complicated in Russia by the exceptionally
mild winter. Furthermore, the Russian government's decision to
increase export duties on timber indirectly raises wood prices.
Approximately 10 per cent of M-real's wood supply comes from Russia
and can be replaced by wood from other sources if necessary.
Outlook
The demand for office paper and packaging paperboard, as well as
their price development, is expected to remain good in the third
quarter of 2007. The weak US dollar and the consequent repatriation
of volumes by European producers make it very difficult to forecast
the price development of coated fine paper and coated magazine paper.
M-real has announced price increases for coated and uncoated fine
paper in the autumn. The price of folding boxboard for new orders was
successfully raised in the second quarter and further increases will
be made if the market situation allows. The decline in prices for
coated magazine paper seems to have levelled off in Europe. Once the
market balance improves as a result of capacity closures, the company
will make the most of the opportunities to raise prices during the
rest of the year.
No relief in production input costs is in sight. Under current
conditions, the full-year cost increases in 2007 are expected to
slightly exceed the positive impact of profitability improvement
programmes.
The third-quarter operating result excluding non-recurring items is
expected to improve from the second quarter.
Risks and uncertainties
Since the forward-looking statements in this interim report are based
on current plans, estimates, and projections, they involve risks and
uncertainties that may cause actual results to differ from those
expressed in such forward-looking statements. For further information
regarding the risk factors, please see page 25 of M-real's Annual
Report for 2006.
Further information:
Seppo Parvi, CFO, tel. +358 10 469 4321
Anne-Mari Achrén, Communications, tel. +358 10 469 4541
BUSINESS AREAS AND MARKET DEVELOPMENT
Consumer Packaging
Q1-Q2 Q1-Q2
Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Sales, MEUR 243 235 241 236 237 478 494 971
EBITDA, MEUR 28 39 25 38 24 67 68 131
excl. non-recurring
items,
MEUR 33 39 25 38 24 72 68 131
Operating result,
MEUR 8 21 0 17 2 29 26 43
excl. non-recurring
items,MEUR 15 21 4 17 2 36 26 47
Return on capital
employed, % 4.1 10.9 0.3 7.5 1.3 7.6 6.1 5.1
excl. non-recurring
items,
% 7.9 10.9 2.1 7.5 1.3 9.4 6.1 5.6
Deliveries, 1,000 t 313 302 288 285 284 615 588 1,161
Board deliveries,
1,000 t 302 311 279 273 270 613 569 1,121
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Second quarter compared with the previous quarter
The operating result of the Consumer Packaging business area,
excluding non-recurring items, decreased from the previous quarter,
amounting to EUR 15 million (Q1/07: 21). Operating result including
non-recurring items totalled EUR 8 million (21). The operating result
includes, as non-recurring costs, EUR 5 million in cost provisions
and EUR 2 million in fixed asset write-downs related to the programme
to improve profitability of operations in Finland. These figures
include the closedown expenses incurred from paperboard machine line
2 at the Tako board mill.
The result suffered from higher fixed costs, mainly due to seasonal
variation caused by Easter and Midsummer shutdowns, a decrease in
product stocks and the weakening of the US dollar.
Deliveries by Western European folding boxboard producers remained at
the same level with the previous quarter. M-real's deliveries of
folding boxboard were up 4 per cent. The selling price of folding
boxboard in euro fell slightly from the previous quarter due to the
continued weakening of the US dollar.
Linerboard deliveries increased by 3 per cent from the first quarter.
The average selling price remained nearly unchanged.
January-June compared with the corresponding period in 2006
The business area's operating result in January-June totalled EUR 36
million (Q1-Q2/06: 26). Compared to the previous year, profitability
improved mainly due to higher delivery volumes and improved
efficiency. The January-June result in 2006 was negatively affected
by the investment shutdown at the Simpele mill and the strike of
Finnish paper workers.
The deliveries of folding boxboard manufacturers in Western Europe
increased by 5 per cent year on year. M-real's deliveries were also 5
per cent higher. The selling price of folding boxboard in euros was
lower than the previous year due to the weaker US dollar.
Linerboard deliveries increased considerably from the previous year.
The average price in euro corresponded to that of 2006. The selling
price of wallpaper base has risen significantly.
The carton plants sold in Finland and Hungary and the Meulemans
carton plant in Belgium currently for sale have been reported under"Other operations" since the beginning of 2007.
Publishing
Q1-Q2 Q1-Q2
Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Sales, MEUR 208 212 220 226 216 420 441 887
EBITDA, MEUR 12 21 23 36 23 33 55 114
excl. non-recurring
items, MEUR 15 21 23 36 23 36 55 114
Operating result,
MEUR -7 3 3 14 2 -4 13 30
excl. non-recurring
items, MEUR -4 3 3 14 2 -1 13 30
Return on capital
employed, % -2.5 1.3 1.4 5.3 0.9 -0.6 25 3.0
- excl.
non-recurring
items, % -1.3 1.3 1.4 5.3 0.9 0.0 2.5 3.0
Deliveries, 1,000 t 302 303 313 320 307 605 624 1,258
Production, 1,000 t 287 282 283 307 270 569 577 1,167
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Second quarter compared with the previous quarter
The second-quarter operating result of the Publishing business area,
excluding non-recurring items, was EUR -4 million (Q1/07: 3). A cost
provision of EUR 3 million was recognised as a non-recurring item
related to the programme to improve profitability of operations in
Finland. The operating result including non-recurring items was EUR
-7 million (3). The operating result was mainly weakened by the
decrease in the average selling price, higher fixed costs due to
Easter, Midsummer and annual shutdowns, as well as higher fibre
costs.
Deliveries by Western European producers of coated magazine paper
were down 4 per cent. Delivery volumes remained nearly unchanged in
the Publishing business area.
January-June compared with the corresponding period in 2006
The operating result of Publishing business area, excluding
non-recurring items, was EUR -1 million (Q1-Q2/06: 13). The decrease
was mainly caused by higher fibre costs, a decline in the average
selling price and lower delivery volumes. Cost-savings measures had a
positive impact on the operating result.
Deliveries by Western European producers of coated magazine paper
were down 1 per cent. Volumes in Publishing business area decreased
by 3 per cent.
Commercial Printing
Q4/06
Q1-Q2 Q1-Q2
Q2/07 Q1/07 Q3/06 Q2/06 2007 2006 2006
Sales, MEUR 339 366 369 361 380 705 774 1, 504
EBITDA, MEUR 19 6 -33 14 -26 25 -2 -21
excl. non-recurring
items, MEUR 18 20 19 16 15 38 39 74
Operating result,
MEUR -5 -17 -179 -10 -51 -22 -53 -242
excl. non-recurring
items,
MEUR -6 -3 -6 -8 -10 -9 -12 -26
Return on capital
employed, % -1.6 -6.3 -63.3 -3.2 -16.2 -4.0 -8.6 -21.7
excl. non-recurring
items, % -2.0 -0.8 -1.9 -2.6 -3.2 -1.4 -1.9 -2.2
Deliveries, 1,000 t 422 454 464 453 481 876 978 1,895
Production, 1,000 t 448 457 464 456 494 905 1,003 1,923
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Second quarter compared with the previous quarter
The second-quarter operating result of the Commercial Printing
business area, excluding non-recurring items, totalled EUR -6 million
(Q1/07: -3). Operating result including non-recurring items was EUR
-5 million (Q1/07: -17). Net non-recurring items amounted to EUR 1
million (Q1/07: -14).
The business area's overall delivery volume was down approximately 7
per cent from the previous quarter. The comparable delivery volume
decreased by 3 per cent, taking into account the closedown of the
Sittingbourne mill and Gohrsmühle machines No. 6 and 7. As for raw
material costs, the price of pulp has remained high and the price of
wood has continued to rise. As a result of high prices and weak
availability of wood, pulp production has been curtailed to a certain
degree.
The deliveries of Western European coated fine paper manufacturers
decreased by 5 per cent. M-real's overall deliveries of coated fine
paper were 7 per cent lower than in the previous quarter. The
comparable delivery volume of coated fine paper decreased by 3 per
cent. The average selling price in euro was up 1 per cent. The demand
for coated fine paper fell in the second quarter, as did the
operating rates.
The selling price in euro of uncoated fine paper increased by 3 per
cent. The prices of speciality papers continued their slight upward
trend.
January-June compared with the corresponding period in 2006
The business area's operating result excluding non-recurring items in
January-June totalled EUR -9 million (Q1-Q2/06: -12). Overall
deliveries were approximately 10 per cent lower year on year due to
the closedown of the Sittingbourne mill and the Gohrsmühle machines,
as well as to the divestment of the Pont Sainte Maxence mill. The
comparable delivery volume corresponded to that of the comparison
period. Profitability was particularly hurt by fibre expenses, which
increased considerably from the previous year. The business area's
comparable average selling price in euro was at the previous year's
level despite foreign currencies weakening against the euro.
Profitability benefited from the cost savings achieved through the
savings programme and from the disposals and closures of unprofitable
units.
Deliveries by coated fine paper producers in Western Europe remained
at last year's level. M-real's overall deliveries of coated fine
paper decreased nearly 9 per cent. The comparable delivery volume
remained unchanged.
Office Papers
Q4/06
Q1-Q2 Q1-Q2
Q2/07 Q1/07 Q3/06 Q2/06 2007 2006 2006
Sales, MEUR 183 202 189 181 174 385 357 727
EBITDA, MEUR 15 -8 26 15 -2 7 18 59
excl. non-recurring
items,
MEUR 15 22 26 15 8 37 28 69
Operating result,
MEUR 1 -22 -4 -1 -17 -21 -13 -18
excl. non-recurring
items,
MEUR 1 8 11 -1 -7 9 -3 7
Return on capital
employed, MEUR 0.6 -12.0 -1.9 -0.2 -9.0 -5.7 -3.4 -2.3
excl. non-recurring
items, % 0.6 5.0 6.0 -0.2 -3.7 2.7 -0.7 1.1
Deliveries, 1,000 t 241 272 264 258 251 513 517 1,039
Production, 1,000 t 257 280 253 259 252 537 516 1,028
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Second quarter compared with the previous quarter
The second-quarter operating result of the Office Papers business
area, excluding non-recurring items, totalled EUR 1 million (Q1/07:
8).
A cost provision of EUR 29 million to finalise the closedown of the
Wifsta mill was reported as a non-recurring item in the previous
quarter. No non-recurring items were recognised in the second
quarter.
The operating result, excluding non-recurring items, particularly
suffered from the annual shutdowns of the Alizay and Husum mills and
the decrease in delivery volumes. The 3 per cent price increase in
the average selling price had a positive impact on results.
Overall deliveries by Western European uncoated fine paper producers
were down by 7 per cent. The delivery volume of Office Papers
decreased by 11 per cent.
January-June compared with the corresponding period in 2006
The business area's operating result excluding non-recurring items in
January-June totalled EUR 9 million (-3). In 2006 the business area
reported its EUR 10 million share in the cost provision for the
Alizay mill efficiency improvement programme as a non-recurring item.
The operating result was improved mainly by the 9 per cent increase
in the average selling price, as well as the decrease in fixed costs.
It was negatively affected by higher raw material and energy costs.
Overall deliveries by Western European uncoated fine paper producers
were down by 1 per cent. The delivery volume of Office Papers
decreased by 1 per cent.
Map Merchant Group
Q1-Q2 Q1-Q2
Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Sales, MEUR 349 379 388 342 354 728 719 1,438
EBITDA, MEUR 7 8 5 5 8 15 17 27
excl. non-recurring
items,
MEUR 7 11 11 5 8 18 17 33
Operating result,
MEUR 6 7 -59 3 7 13 14 -42
excl. non-recurring
items,
MEUR 6 10 10 3 7 16 14 27
Return on capital 8.9 11.8 -82.8 4.9 8.2 10.3 8.5 -14.2
employed, %
excl. non-recurring 14.0 4.9
items,
% 9.2 15.9 8.2 12.4 8.5 9.4
Deliveries, 1,000 t 339 372 367 347 354 711 717 1,431
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Second quarter compared with the previous quarter
The second-quarter operating result of the Map Merchant Group,
excluding non-recurring items, totalled EUR 6 million (Q1/07: 10). A
non-recurring expense of EUR 3 million was reported in the first
quarter. The result was weakened by the seasonally lower delivery
volumes.
January-June compared with the corresponding period in 2006
The operating result excluding non-recurring items totalled EUR 16
million (Q1-Q2/06: 14). The result was strengthened by the slight
increase in delivery volumes and the rising prices of office papers.
The interim report is unaudited.
Condensed consolidated
income statement Q1-Q2 Q1-Q2
MEUR 2007 2006 Change 2006 Q1/07 Q2/07
Continuing operations
Sales 2,792 2,819 -27 5,624 1,432 1,360
Other operating income 183 69 114 116 155 28
Operating expenses -2,701 -2,743 42 -5,441 -1,386 -1,315
Depreciation and impairment
losses -179 -185 6 -570 -97 -82
Operating result 95 -40 135 -271 104 -9
% of sales 3.4 -1.4 -4.8 7.3 -0.7
Share of results in
associated
companies -1 -1 0 0 0 -1
Exchange gains and losses -3 5 -8 0 -5 2
Other financial income and
expenses -75 -59 -16 -137 -41 -34
Result before taxes 16 -95 111 -408 58 -42
% of sales 0.6 -3.4 -7.3 4.1 -3.1
Income taxes -11 -5 -6 9 -4 -7
Result for the period 5 -100 105 -399 54 -49
% of sales 0.2 -3.5 -7.1 3.8 -3.6
Attributable to
Shareholders of parent company 5 -100 105 -396 54 -49
Minority interest 0 0 0 -3 0 0
Earnings per share for result
attributable to shareholders of
parent company (EUR/share) 0.01 -0.30 0.31 -1.21 0.16 -0.15
Taxes include taxes corresponding to the result for the period under
review.
Condensed consolidated balance sheet
30.6. 30.6. 31.12.
MEUR 2007 % 2006 % 2006 %
Assets
Non-current assets
Goodwill 376 6.6 570 9.1 376 6.1
Other intangible assets 50 0.9 95 1.5 62 1.0
Tangible assets 2,956 51.6 3,174 50.5 3,156 51.1
Biological assets 44 0.8 43 0.7 52 0.8
Shares in associated
and other companies 107 1.8 115 1.8 109 1.8
Interest-bearing receivables 34 0.6 38 0.6 34 0.6
Deferred tax receivables 31 0.5 32 0.5 31 0.5
Other non-interest-bearing
receivables 8 0.1 13 0.2 18 0.3
3,606 62.9 4,080 64.9 3,838 62.2
Current assets
Inventories 679 11.9 737 11.7 676 11.0
Receivables
Interest bearing 55 1.0 169 2.7 163 2.6
Non-interest-bearing 1,180 20.6 1,202 19.1 1 210 19.6
Cash and cash equivalents 174 3.0 99 1.6 182 2.9
2,088 36.5 2,207 35.1 2,231 36.1
Assets classified as
held for sale 32 0.6 0 103 1.7
Total assets 5,726 100 6,287 100 6,172 100
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity
Equity attributable to
shareholders of parent company 1,823 31.9 2,142 34.1 1,843 29.9
Minority interest 52 0.9 58 0.9 63 1.0
Total shareholders' equity 1,875 32.8 2,200 35.0 1,906 30.9
Non-current liabilities
Deferred tax liabilities 269 4.7 329 5.2 284 4.6
Post-employment benefit
obligations 194 3.4 204 3.2 199 3.2
Provisions 81 1.4 66 1.0 79 1.3
Other non-interest-bearing
liabilities 32 0.6 48 0.8 28 0.5
Interest-bearing liabilities 2,123 37.1 2,123 33.8 2,182 35.4
2,699 47.2 2,770 44.0 2,772 45.0
Current liabilities
Non-interest-bearing liabilities 814 14.2 753 12.0 865 14.0
Interest-bearing liabilities 327 5.7 564 9.0 599 9.7
1,141 19.9 1,317 21.0 1,464 23.7
Liabilities relating to assets
classified as held for sale 11 0.1 0 0.0 30 0.4
Total liabilities 3,851 67.2 4,087 65.0 4,266 69.1
Total shareholders' equity
and liabilities 5,726 100 6,287 100 6,172 100
Condensed consolidated cash flow statement
Q1-Q2 Q1-Q2
MEUR 2007 2006 2006 Q2/07
Cash flow from
operating activities
Result for the period 4 -100 -399 -50
Total adjustments 146 263 701 109
Change in working capital -18 -57 65 9
Cash flow arising from operations 132 106 367 68
Net finance costs -68 -51 -113 -41
Income taxes paid -21 -15 -32 -17
Net cash flow arising from
operating activities 43 40 222 10
Investments in tangible and
intangible assets -112 -204 -428 -62
Divestments of assets and other 275 12 28 35
Net cash flow arising from 163 -192 -400 -27
investing activities
Share issue, minority interest 2 23 31 1
Changes in long-term loans and -197 157 259 50
other financial items
Dividends paid -20 -39 -39 0
Net cash flow arising from -215 141 251 51
financing activities
Changes in cash and -9 -11 73 34
cash equivalents
Cash and cash equivalents at 182 112 112 137
beginning of period
Translation difference in cash and -1 -2 -2 0
cash equivalents
Changes in cash and cash equivalents -9 -11 73 34
Assets held for sale, folding carton plants 2 0 -1 3
Cash and cash equivalents 174 99 182 174
at end of period
Statement of changes in shareholders' equity
Fair
MEUR value
Trans- and Re- Mi-
Share lation other tained nority
Share pre- dif- re- earn- inter-
capital mium ference serves ings est Total
Shareholders' equity
31.12.2005, IFRS 558 667 6 0 1,040 45 2,316
Net expenses
recognised
directly in equity
Translation
differences -8 -8
Net investment
hedge,
net of tax
Currency flow hedges
transferred to
income
statement, net of
tax 2 2
recognised in
equity,
net of tax 14 14
Interest flow hedges
recognised in
equity,
net of tax 2 2
Change in
minority interest
Metsä-Botnia
restructuring in
Uruguay 13 13
Result for the
period -100 1 -99
Total recognised
income
and expenses
for the period -8 18 -100 14 -76
Dividends paid -39 -1 -40
Shareholders' equity
30.6.2006, IFRS 558 667 -2 18 901 58 2,200
Shareholders' equity
1.1.2007, IFRS 558 667 3 10 605 63 1,906
Net expenses
recognised
directly in equity
Translation
differences -11 -1 -12
Net investment
hedge,
net of tax 8 8
Currency flow hedges
transferred to
income
statement, net of
tax -11 -11recognised in
equity,
net of tax 3 3
Interest flow hedges
transferred to
income
statement, net of
tax -3 -3
recognised in
equity,
net of tax 3 3
Commodity hedges
transferred to
income
statement, net of
tax 6 6
recognised in
equity,
net of tax 0 0
Change in minority
interest
Sale of Metsä-Botnia
shares (9%) -11
Metsä-Botnia
restructuring in
Uruguay 2
-9 -9
Result for the
period 5 0 5
Total recognised
income
and expenses for
period -3 -2 5 -10 -10
Dividends paid -20 -1 -21
Shareholders' equity
30.6.2007, IFRS 558 667 0 8 590 52 1,875
Q1-Q2 Q1-Q2
Key ratios 2007 2006 2006 Q2/07
Sales, MEUR 2,792 2,819 5,624 1,360
EBITDA, MEUR 274 145 299 73
excl. non-recurring items, MEUR 196 199 411 84
Operating result, MEUR 95 -40 -271 -9
excl. non-recurring items, MEUR 35 14 45 4
Result before taxes, MEUR 16 -95 -408 -42
excl. non-recurring items, MEUR -44 -41 -92 -29
Result for the period, MEUR 5 -100 -399 -49
Earnings per share, EUR 0.01 -0.30 -1.21 -0.15
excl. non-recurring items, EUR -0.21 -0.15 -0.27 -0.13
from continuing operations, EUR 0.01 -0.30 -1.21 -0.15
from discontinued operations, EUR 0.00 0.00 0.00 0.00
Return on equity, % 0.5 -8.9 -18.9 -10.4
excl. non-recurring items, % -7.2 -4.3 -4.4 -8.8
Return on capital employed, % 4.6 -1.1 -5.2 -0.5
excl. non-recurring items, % 2.0 1.1 1.4 0.7
Equity ratio at end of period, % 32.8 35.0 30.9 32.8
Gearing at end of period, % 117 108 126 117
Shareholders' equity per share
at end of period, EUR 5.55 6.53 5.62 5.55
Net interest-bearing liabilities
at end of period, MEUR 2,192 2,381 2,403 2,192
Gross capital expenditure, MEUR 112 204 428 62
Board deliveries, 1,000 t 615 588 1,161 313
Paper deliveries, 1,000 t 1,994 2,120 4,192 965
Personnel at end of period 13,302 15,277 14,125 13,302
Securities and guarantees
MEUR Q2/07 Q2/06 2006
For own liabilities 56 101 77
On behalf of associated companies 1 1 1
On behalf of Group companies 5 5 5
On behalf of others 2 10 3
Total 64 117 86
Open derivative contracts
MEUR Q2/07 Q2/06 2006
Interest rate derivatives 2,373 3,302 2,828
Foreign exchange derivatives 3,563 3,577 4,747
Other derivatives 183 116 152
Total 6,119 6,995 7,727
The fair value of open derivative contracts calculated at market
value was EUR 5.9 million at the end of the review period
(31.12.2006: EUR -8.3 million and EUR 12.0 million 30.6.2006).
The gross amount of open contracts also includes closed contracts,
totalling EUR 2,308.6 million (31.12.2006: EUR 3,664.0 million and
EUR 3,134.7 million at 30.6.2006).
Commitments
related to fixed assets
MEUR Q2/07 Q2/06 2006
Payments in less than a year 48 114 146
Payments later 5 37 16
Changes in property, Q1-Q2 Q1-Q2
plant and equipment, MEUR 2007 2006 2006
Carrying value at beginning of period 3,156 3,178 3,178
Capital expenditure 110 189 456
Decrease -143 -36 -82
Assets classified as held for sale 0 0 -28
Depreciation and impairment losses -155 -167 -385
Translation difference -12 10 17
Carrying value at end of period 2,956 3,174 3,156
Q1-Q2 Q1-Q2
Related-party transactions, MEUR 2007 2006 2006
Transactions with
parent company and
sister companies
Sales 19 30 35
Other operating income 136 2 3
Purchases 255 248 491
Interest income 1 3 7
Interest expenses 4 9 13
Non-current receivables 20 23 21
Current receivables 64 187 183
Non-current liabilities 1 1 1
Current liabilities 43 56 362
Business transactions
with associated companies
Sales 0 0 0
Purchases 2 2 4
Non-current receivables 7 7 7
Current receivables 0 0 3
Current liabilities 3 1 3
Accounting policies
The interim report was prepared in accordance with the IAS 34
standard Interim Financial Reporting and the accounting policies
presented in M-real Annual Report 2006.
Taxes include taxes corresponding to the result for the period under
review.
New and changed standards
IFRS 7 Financial instruments: Disclosures and a complementary
amendment to IAS 1 Presentation of Financial Statements - Capital
Disclosures, effective for annual periods beginning on or after 1
January 2007. IFRS 7 introduces new disclosure to improve the
information about the financial instruments in the notes to the
financial statements, but have no effect on classification or
valuation of the financial instruments.
Calculation of key ratios
Return on equity (%) = (Profit from continuing operations before
tax - direct taxes) ./.
(Total equity (average))
Return on capital = (Profit from continuing operations before
employed (%) tax + interest expenses, net exchange
gains/losses and other financial expenses)
./.
(Total assets - non-interest-bearing
liabilities (average))
Equity ratio (%) = (Total equity) ./.
(Total assets - advance payments received)
Gearing ratio (%) = (Interest-bearing liabilities - liquid
funds - interest-bearing receivables) ./.
(Total equity)
Earnings per share = (Profit attributable to shareholders of
parent company) ./.
(Adjusted number of shares (average))
Shareholders' equity per = (Equity attributable to shareholders of
share parent company) ./.
(Adjusted number of shares at end of
review period)
Quarterly information
Sales and result Q1-Q2 Q1-Q2
by segment, MEUR Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Consumer Packaging 243 235 241 236 237 478 494 971
Publishing 208 212 220 226 216 420 441 887
Commercial Printing 339 366 369 361 380 705 774 1,504
Office Papers 183 202 189 181 174 385 357 727
Map Merchant Group 349 379 377 342 354 728 719 1,438
Internal sales and
other operations 38 38 42 21 17 76 34 97
Sales total 1,360 1,432 1,438 1,367 1,378 2,792 2,819 5,624
Consumer Packaging 8 21 0 17 2 29 26 43
Publishing -7 3 3 14 2 -4 13 30
Commercial Printing -5 -17 -179 -10 -51 -22 -53 -242
Office Papers 1 -22 -4 -1 -17 -21 -13 -18
Map Merchant Group 6 7 -59 3 7 13 14 -42
Other operations -12 112 -7 -8 -18 100 -27 -42
Operating result -9 104 -246 15 -75 95 -40 -271
% of sales -0.7 7.3 -17.1 1.1 -5.4 3.4 -1.4 -4.8
Share of results
in associated
companies -1 0 0 1 0 -1 -1 0
Exchange gains and
losses 2 -5 -4 -1 -3 -3 5 0
Other financial
income
and expenses -34 -41 -41 -37 -33 -75 -59 -137
Result from
continuing operations
before tax -42 58 -291 -22 -111 16 -95 -408
Income taxes -7 -4 25 -11 8 -11 -5 9
Result for the period
from continuing
operations -49 54 -266 -33 -103 5 -100 -399
Result for period
from
discontinued
operations 0 0 0 0 0 0 0 0
Result for the period -49 54 -266 -33 -103 5 -100 -399
Minority interest 0 0 1 2 1 0 0 3
Financial result
attributable to
shareholders of
parent company -49 54 -265 -31 -102 5 -100 -396
Earnings per share,
EUR -0.15 0.16 -0.81 -0.10 -0.31 0.01 -0.30 -1.21
Non-recurring Q1-Q2/ Q1-Q2/
items, MEUR Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Consumer Packaging -7 0 -4 0 0 -7 0 -4
Publishing -3 0 0 0 0 -3 0 0
Commercial Printing 1 -14 -173 -2 -41 -13 -41 -216
Office Papers 0 -30 -15 0 -10 -30 -10 -25
Map Merchant Group 0 -3 -69 0 0 -3 0 -69
Other operations -4 120 1 0 -3 116 -3 -2
Total of
non-recurring
items in operating
result -13 73 -260 -2 -54 60 -54 -316
Non-recurring items
for
financial items 0 0 0 0 0 0 0 0
Non-recurring items
total -13 73 -260 -2 -54 60 -54 -316
Operating result
excl.
non-recurring items 4 31 14 17 -21 35 14 45
% of sales 0.3 2.2 1.0 1.2 -1.5 1.3 0.5 -0.8
Result before
taxes,
excl. non-recurring
items -29 -15 -31 -20 -57 -44 -41 -92
% of sales -2.1 -1.0 -2.2 -1.5 -4.1 -1.6 -1.5 -1.6
Result per share,
excl.
non-recurring
items,
EUR -0.13 -0.08 -0.04 -0.08 -0.16 -0.21 -0.15 -0.27
Return on equity,
excl.
non-recurring
items, % -8.8 -5.4 -2.6 -5.8 -9.1 -7.2 -4.3 -4.4
Return on capital
employed, excl.
non-
recurring items, % 0.7 3.2 1.5 2.0 -1.2 2.0 1.1 1.4
Return on capital Q1-Q2 Q1-Q2
employed, % Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Consumer Packaging 4.1 10.9 0.3 7.5 1.3 7.6 6.1 5.1
Publishing -2.5 1.3 1.4 5.3 0.9 -0.6 2.5 3.0
Commercial Printing -1.6 -6.3 -63.3 -3.2 -16.2 -4.0 -8.6 -21.7
Office Papers 0.6 -12.0 -1.9 -0.2 -9.0 -5.7 -3.4 -2.3
Map Merchant Group 8.9 11.8 -82.8 4.9 8.2 10.3 8.5 -14.2
Total -0.5 9.6 -20.3 1.8 -5.6 4.6 -1.1 -5.2
Capital employed, MEUR Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Q1/06
Consumer Packaging 741 777 809 914 907 917
Publishing 995 1,020 1,069 1,091 1,094 1,124
Commercial Printing 1,047 1,057 1,040 1,208 1,243 1,273
Office Papers 665 669 722 742 746 754
Map Merchant Group 276 264 257 313 318 323
Other equity 604 583 797 609 578 514
Total 4,328 4,371 4,694 4,877 4,886 4,904
The capital employed for a segment included its assets: goodwill,
other intangible goods, tangible assets, biological assets,
investments in associates, inventories, accounts receivables,
prepayments and accrued income (excluding interest and taxes), less
the segment's liabilities (accounts payable, advance payments,
accruals and deferred income (excluding interest and taxes).
+------------------------------------------------+
| Personnel, average | Q1-Q2 | Q1-Q2 | |
| | 2007 | 2006 | 2006 |
|---------------------+--------+--------+--------|
| Consumer Packaging | 1,556 | 2,629 | 2,573 |
|---------------------+--------+--------+--------|
| Publishing | 1,343 | 1,468 | 1,437 |
|---------------------+--------+--------+--------|
| Commercial Printing | 3,917 | 4,620 | 4,425 |
|---------------------+--------+--------+--------|
| Office Papers | 1,710 | 1,847 | 1,822 |
|---------------------+--------+--------+--------|
| Map Merchant Group | 2,414 | 2,506 | 2,481 |
|---------------------+--------+--------+--------|
| Other operations | 2,670 | 2,137 | 2,146 |
|---------------------+--------+--------+--------|
| Total | 13,610 | 15,207 | 14,884 |
+------------------------------------------------+
Q1-Q2 Q1-Q2
Deliveries, 1,000 t Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 2007 2006 2006
Consumer Packaging 313 302 288 285 284 615 588 1,161
Publishing 302 303 313 320 307 605 624 1,258
Commercial Printing 422 454 464 453 481 876 978 1,895
Office Papers 241 272 264 258 251 513 517 1,039
Paper segments,
total 965 1,029 1,041 1,031 1,040 1,994 2,120 4,192
Map Merchant Group 339 372 367 347 354 711 717 1,431
+------------------------------------------------------------------------------+
|Production, | | | | | | Q1-Q2| Q1-Q2| |
|1,000 t |Q2/07 |Q1/07 |Q4/06 |Q3/06 |Q2/06 | 2007| 2006| 2006|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Consumer | | | | | | | | |
|Packaging | 302| 311| 279| 273| 270| 613| 569| 1,121|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Publishing | 287| 282| 283| 307| 270| 569| 577| 1,167|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Commercial | | | | | | | | |
|Printing | 448| 457| 464| 456| 494| 905| 1,003| 1,923|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Office Papers | 257| 280| 253| 259| 252| 537| 516| 1,028|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Paper mills, | | | | | | | | |
|total | 992| 1,019| 1,000| 1,023| 1,016| 2,011| 2,096| 4,119|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Metsä-Botnia | | | | | | | | |
|pulp 1) | 200| 203| 255| 243| 234| 403| 485| 983|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|M-real pulp | 398| 426| 449| 443| 422| 824| 862| 1,754|
+------------------------------------------------------------------------------+
1) corresponds to M-real's share in Metsä-Botnia (39 % until Q4/06,
30 % as of Q1/07).
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