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2009-04-22 10:42:29 CEST 2009-04-22 10:43:09 CEST REGULATED INFORMATION Metsäliitto Osuuskunta - Interim report (Q1 and Q3)Metsäliitto Group interim report 1-3/2009Metsäliitto Group Interim Report 1 January-31 March 2009, Stock Exchange Release April 22, 2009 at 11.30 a.m. Metsäliitto Group's operating result excluding non-recurring items EUR -67 million Result for the first quarter of 2009 - Sales EUR 1,278 million (EUR 1,710 million). - Operating result excluding non-recurring items was EUR -67 million (60). Operating result including non-recurring items was EUR -137 million (84). - Result before taxes and excluding non-recurring items was EUR -93 million (2). Result before taxes and including non-recurring items was EUR -163 million (26). Events during the first quarter - Production was discontinued at the Metsä-Botnia Kaskinen pulp mill. There were no viable economic prerequisites to continue the mill`s operations. - Production adjustment measures also continued in the other business areas of the Group. Wood Products Industry closed the Teuva sawmill and announced it would suspend operations at the Kyröskoski sawmill until further notice and start statutory labour negotiations at the Karihaara sawmill. As a result of the negotiations concluded in April, operations at the Karihaara sawmill will also be suspended until further notice by the end of June. In Wood Supply Finland, a decision on temporary layoffs was made. - M-real's profitability improvement programme of EUR 80 million and a separate cash flow improvement programme of EUR 60 million were successfully launched."We will concentrate on seeking profitability and improving cash flow in all our operations as well as on restructuring and developing the core of our business operations. This work is being done in an extremely challenging market situation. Tissue and Cooking Papers managed to achieve good results even in the challenging situation at the beginning of the year, and these have had an uplifting impact on us." Kari Jordan, President & CEO, Metsäliitto Group Metsäliitto Group Income statement 2009 2008 2008 (Continuing operations) 1-3 1-3 1-12 Sales 1 278 1 710 6 434 Other operating income 42 59 239 Operating expenses -1 342 - 1 587 -6 189 Depreciation and impairment losses -116 -98 -482 Operating result -137 84 2 Share of results in associates -2 2 6 Exchange gains and losses -2 2 19 Other net financial items -20 -62 -260 Result before income tax -163 26 -233 Income tax 19 -7 60 Result from continuing operations -144 19 -172 Metsäliitto Group Profitability 2009 2008 2008 (Continuing operations) 1-3 1-3 1-12 Operating result, EUR mill. -137 84 2 - " -, excluding non-recurring items -67 60 45 Return on capital employed, % -10.1 7.0 0.5 - " -, excluding non-recurring items -4.7 5.2 1.3 Return on equity, % -34.0 3.2 -8.4 - " -, excluding non-recurring items -17.5 -0.8 -6.4 Financial position 2009 2008 2008 31.3. 31.3. 31.12. Equity ratio, % 24.8 29.2 26.0 Net gearing ratio, % 167 142 149 Interest-bearing net liabilities, EUR mill. 2 666 3 329 2 666 Sales and Operating result Wood Wood Pulp *) Board Tissue 1-3/2009 Supply Products Industry and and (EUR mill.) Industry Paper Cooking Industry Papers Sales 327 202 303 623 218 Other operating income 1 1 9 33 2 Operating expenses -322 -218 -341 -704 -191 Depreciation & impairment -1 -10 -93 -70 -10 losses Operating result 5 -25 -122 -118 19 Non-recurring items 0 0 75 53 0 Operating result excl. non-recurring items 5 -25 -47 -65 19 *) Represents 100%. The Metsäliitto Group consolidates 53% of the Pulp Industry. The figures are unaudited METSÄLIITTO GROUP INTERIM REPORT 1 JANUARY - 31 MARCH 2009 Sales and result Metsäliitto Group's sales for the first quarter were EUR 1,278 million (1,710). Operating result excluding non-recurring items was EUR -67 million (60). The non-recurring items were a net of EUR -70 million (24), of which EUR 40 million was associated with the closure of the Metsä-Botnia Kaskinen mill, EUR 28 million with the closure of the M-real Hallein paper mill and EUR 2 million with M-real's sales network improvement programme. Operating result excluding non-recurring items improved slightly compared to the previous quarter (Q4/08: -75). Compared to the corresponding period last year, the operating result weakened significantly as the effects of the global recession started to show during the last quarter of 2008. The situation in Wood Products Industry was extremely challenging even before this and at the end of 2008, the Board and Paper as well as Pulp industries were also hit hard. The downturn has not had a considerable impact on demand in Tissue and Cooking Papers. As a result of the weakened market situation, production adjustment measures were boosted in nearly all of the Group's business areas. During the first quarter of the year, Metsä-Botnia's Kaskinen pulp mill and Wood Products Industry's Teuva sawmill were closed and operations were temporarily suspended at the Kyröskoski sawmill. In addition, statutory labour negotiations were held in Wood Supply Finland and in the different business areas. The operating result of the Metsäliitto Group including non-recurring items was EUR -137 million (84). Financial income was EUR 10 million (5), shares in associated companies' profits totalled EUR -2 million (2) and financial expenses came to EUR 31 million (67). Net exchange gains/losses booked in financial items were EUR -2 million (2). On average, the US dollar strengthened by 13 per cent in the first quarter, the British pound weakened by 20 per cent and the Swedish krona by 16 per cent compared with the same period last year. M-real completed a purchase with a nominal value of EUR 59.95 million from the market of its own bond of EUR 400 million maturing in December 2010. The financial income recognised for purchases amounted to approximately EUR 30.8 million. The result before taxes was EUR -163 million (26) and taxes, including changes in deferred tax liability, were EUR 19 million (-7). The result for continuing operations was EUR -144 million (19), the result for closed operations was EUR -10 million (-19) and the result for the financial period was EUR -153 million (0). The parent company members' share of the result for the period was EUR -84 million (9) and the minority share was EUR -69 million (-9). The Group's return on capital employed for continuing operations was -10.1 per cent (7.0) and return on equity was -34.0 per cent (3.2). Excluding non-recurring items, return on capital employed was -4.7 per cent (5.2) and return on equity was -17.5 per cent (-0.8). Balance sheet and financing Metsäliitto Group's total liquidity was EUR 1.7 billion at the end of March (31 December 2008: 1.8). Of this, EUR 0.4 billion (0.6) was in terms of liquid assets and investments, and EUR 1.3 billion (1.2) was in binding credit facility agreements not included in the balance sheet. In addition, the Group can satisfy short-term financial needs with non-binding commercial paper schemes in Finland and abroad, as well as credit lines amounting to approximately EUR 0.6 billion. The Group's equity ratio in March was 24.8 per cent and net gearing was 167 per cent (31 December 2008: 26.0% and 149%, respectively). Interest-bearing net liabilities were EUR 2,666 million (31 December 2008: 2,666). The equity ratio of the parent company, Metsäliitto Cooperative, was 55.8 per cent at the end of March and the net gearing ratio was 49 per cent (31 December 2008: 54.6% and 45%, respectively). Metsäliitto Cooperative's members' capital grew by EUR 0.6 million in January-March. The actual members' capital decreased by EUR 1.5 million, the additional members' capital A grew by EUR 1.8 million and the additional members' capital B grew by EUR 0.4 million. At the end of March, Metsäliitto Cooperative had 128,125 members (31 December 2008: 129 267). Metsäliitto Cooperative's Supervisory Board will make a proposal to Metsäliitto Cooperative's Representative Council, convening on 22 April 2009, to decide to pay 5.5 per cent (6.5) of interest on the subscribed members' capital, 5.0 per cent (5.5) on the additional A series capital and 4.5 per cent (4.0) on the additional B series capital for 2008. Thus, the interest on members' capital for 2008 would total EUR 37.4 million (41.1). Personnel The Group employed an average of 16,236 people (17,774) during the first quarter. At the end of March, the number of personnel in the Group was 16,146 (31 December 2008: 16,729). The parent company Metsäliitto Cooperative employed 3,059 people at the end of March (31 December 2008: 3,217). Investments Metsäliitto Group's capital expenditure totalled EUR 35 million (43). M-real's structural change In February 2009, M-real launched a new profit improvement programme with an annual target of EUR 80 million. The programme targets at savings in the business areas and streamlining M-real's support functions to reflect the new company structure after the divestment of Graphic Papers. The full annual effect of the programme will be visible from 2011. The majority of the profit improvement measures are expected to be implemented in 2009, and the profit impact is estimated to be EUR 20-25 million in 2009. The related non-recurring costs booked during 2009 are expected to be about EUR 18 million. M-real is also implementing a separate EUR 60 million programme to improve the 2009cash flow, e.g., the reduction of operating net working capital and cuts in investments. Based on strategic alternatives investigated earlier, M-real announced in 2008 that it was planning to discontinue the production of standard coated fine paper at the Hallein and Gohrsmühle mills. The operations at both mills have been unprofitable for a long time. As a result of the statutory labour negotiations concerning 480 people at the Hallein mill in January 2009, paper production will be discontinued by the end of April 2009. At the Gohrsmühle mill in Germany, standard fine paper production will be discontinued in April while the production of special papers and uncoated fine paper reels and folio sheets will be expanded. The combined standard coated fine paper production capacity of Hallein and Gohrsmühle is about 0.6 million tonnes per annum. The review of future options for the Hallein pulp mill is in progress. In Finland, statutory negotiations concerning 1,500 people at mill operations were conducted to carry out temporary lay-offs. The negotiations were completed during the period 30 January-2 February 2009 in different locations. The temporary lay-offs will be implemented in varying periods during the year, with the maximum duration being 90 days. The reorganisation of the sales network following the sale of the Graphic Papers business area was completed during the first quarter and the statutory labour negotiations were concluded by the end of March. The statutory negotiations were carried out simultaneously in 14 countries, involving approximately 310 employees in customer service and administration. Approximately 50 people were transferred to other M-real business areas and approximately 160 were made redundant. Following the sale of the Graphic Papers business, Sappi recruited approximately 100 people from M-real's sales organisation into its own organisation. The strategic review of the paper business continues. Business areas Wood Supply Wood Supply sales were EUR 327 million (486) in January-March, and operating result amounted to EUR 5 million (10). Operating result does not include non-recurring items (2). Wood Supply Finland accounted for EUR 246 million (334) of sales and EUR 4 million (7) of the operating result. The most significant reason for the reduced sales and operating result is the delivery volume that was clearly lower than the year before. In the first quarter, the amount of wood bought by Metsäliitto in Finland was approximately one half of the amount bought during the corresponding period last year. Due to extensive production cuts, the purchase and harvesting volumes of timber had to be curtailed, especially pulpwood. Purchases concentrated on roundwood and forest energy. The good winter weather enabled the harvesting of stands marked for winter harvesting which had accumulated as a result of mild weather in the previous two winters. The price level declined for both pulpwood and roundwood. A new membership reward system was implemented at the beginning of the year encouraging recurring sale of timber and enabling the use of membership bonuses to purchase services offered by Metsäliitto. An energy wood harvesting project was launched in order to make forest energy procurement more effective. In March, Metsäliitto announced it would adjust Wood Supply Finland to the market situation by temporarily laying off the staff at the procurement districts and procurement and delivery units for two to six weeks. In addition, an organisational restructuring will be implemented in Northern Finland to adjust the wood procurement organisation in the region to the reduced delivery volumes. Timber delivery volumes from Russia fell sharply at the beginning of the year despite the delay in timber duty increases. The deliveries were primarily pulpwood and chips from felling by companies owned by Metsäliitto. Demand for wood was weak and prices fell significantly. Metsäliitto continued the structural change of wood procurement and making the operations more efficient. In the Baltic countries, the market for pulpwood was nearly at a standstill and the prices of all types of timber fell sharply. The size of the wood procurement organisations in the Baltic countries was adjusted to correspond to the reduced delivery volumes. In Sweden, inventory levels of pulpwood were high and wood reception was curtailed. Timber prices were slightly decreasing. The entire delivery volume of Wood Supply to production plants in the three first months of the year was 6.9 million cubic metres (9.2). Wood Products Industry Metsäliitto Wood Products Industry's sales totalled EUR 202 million (315), and the operating result was EUR -25 million (-2). The result does not include non-recurring items. The market situation of the Wood Products Industry was extremely difficult during the first quarter. The weak demand led to lower sales. Furthermore, the result was burdened by the distorted cost structure as a result of the low capacity utilisation rate. The overcapacity in the sawn goods market and the high inventory levels of producers in particular reduced the prices of sawn goods during the first quarter. The interior decoration and garden range markets have not yet slowed down significantly, and Wood Products Industry has managed to maintain a satisfactory price level in highly processes products. Temporary layoffs and other cost saving measures continued at the beginning of the year in order to align costs with the reduced demand. In addition to the closure of the Soinlahti sawmill at the end of 2008, the operations at the Teuva sawmill were discontinued in January 2009. Production at the Kyröskoski sawmill has been suspended until further notice since February, and the operations at the Karihaara sawmill will be suspended by the end of June. Continuing the operations at the Kyröskoski and Karihaara sawmills will be re-evaluated depending on the development in the market. In addition to the sawn goods production, the production of processed sawn goods, plywood and engineered wood products were curtailed in January-March. At the beginning of the year, Wood Products Industry launched further processed plywood products to meet the needs of industrial customers. The development of yard and garden buildings and related services continued strongly in Great Britain and France. A new surface treated decking board with hidden fasteners was launched for the domestic yard and garden furnishing market. In January, Metsäliitto Wood Products Industry signed an agreement on the delivery of Finnforest structures to the Ideapark commercial city in Kiiminki. Pulp Pulp industry sales were EUR 303 million (398) in January-March, and operating result amounted to EUR -47 million (75). The cost effects of non-recurring items and fixed assets write-downs connected to the closure of the Kaskinen mill were EUR 75 million, of which EUR 20 million have an impact on cash flow. The operating result including non-recurring items was EUR -122 million (75). The fall in sales and operating result was due to considerable weakening of the market situation and declining price of pulp that caused the impairment of pulp inventories. The result was also weakened by production curtailment shutdowns caused by declining demand. Demand for pulp continues to be weak due to the low utilisation rate of paper mills. Producers' inventory levels are high in spite of production curtailments at several mills and closures of older capacity. Metsä-Botnia curtailed production at all mills in Finland during the first quarter. The price of pulp continued to decline during the first quarter of the year. In March, softwood pulp was selling at US dollar 580/tonne and hardwood pulp at US dollar 490/tonne. Foreign-currency-denominated market prices for softwood pulp were, on average, 33 per cent lower compared with the first quarter last year. The average prices of hardwood pulp fell by 34 per cent. The statutory labour negotiations regarding the Kaskinen mill were completed on 12 January 2009. The negotiations did not find the economic prerequisites for continuing the operations of the mill, and the running down of production started on 11 March 2009. Draining and cleaning of the process equipment and tanks continued until the end of March. Wood handling, operations of the water treatment and effluent treatment plants and energy production will continue according to the needs of the M-real BCTMP mill located in the same integrate. In March, the International Finance Corporation (IFC) of the World Bank Group published the results of the environmental monitoring for the first year of operations at the Fray Bentos mill. According to the report, the mill's operations comply with environmental standards and its emissions and effluents remain below the levels set by the authorities. The report also indicates that the mill has not had an impact on the quality of water in Río Uruguay or the air quality in the region. M-real's result includes 30 per cent of Pulp Industry's operating result. In total, 53 per cent of the figures for the Pulp Industry are consolidated into Metsäliitto Group's financial statements. Board and Paper Board and Paper's sales totalled EUR 623 million (859), and the operating result excluding non-recurring items was EUR -65 million (14). Operational result was weakened by the reduced delivery volumes due to the difficult demand situation and by the impairment of inventories. The result was improved by the achieved price increases and cost savings. Net non-recurring items totalled EUR -53 million (23) in January-March. Of these, EUR 22 million was associated with the closure of the Metsä-Botnia Kaskinen mill, EUR 28 million with the closure of the M-real Hallein paper mill and EUR 2 million with M-real's sales network improvement programme. The operating result including non-recurring items was EUR -118 million (37). Net interest and other financial expenses totalled EUR +4 million (-37), income from associates was EUR -1 million (0) and net exchange gains/losses recognised as financial items were EUR 0 million (2). In March, M-real completed a purchase with a nominal value of EUR 60 million from the market of its own bond of EUR 400 million maturing in December 2010. A profit of approximately EUR 31 million was recognised in financial income from purchases made. Profit before taxes was EUR -115 million (2), earnings per share were EUR -0.32 (0.00) and return on investment was -13.4 per cent (5.7). The result excluding non-recurring items before taxes was EUR -62 million (-21), earnings per share were EUR -0.18 (-0.06) and return on capital employed was -7.0 per cent (2.9). At the end of March, M-real's equity ratio was 30.3 per cent and net gearing was 101 per cent (31 December 2008: 30.8% and 90%, respectively). In some of M-real's borrowing arrangements, a limit of 120 per cent has been set for gearing and a limit of 30 per cent for the equity ratio. At the end of March, gearing calculated in the manner defined in the borrowing agreements was approximately 81 per cent and the equity ratio about 35 per cent. Tissue and Cooking Papers Sales of Metsä Tissue, which produces tissue and cooking papers, totalled EUR 218 million (230), and its operating result was EUR 19 million (9). The improved operating result was due to both improvement measures and reduced raw material costs. The result does not include non-recurring items. {0>Liikevaihto pieneni ensimmäisellä vuosineljänneksellä noin viisi prosenttia edelliseen vuoteen verrattuna.<}0{>In the first quarter, sales decreased by about 5 per cent compared with the previous year.<0} {0>Pieneneminen johtui myyntivolyymeista (-3 %) ja valuuttakurssimuutoksista (-2 %).<}0{>The decrease was a result of the sales volume (-3%) and exchange rate differences (-2%).<0}{0>Omien tuotemerkkien myynti kasvoi kolme prosenttia edelliseen vuoteen verrattuna.<}0{>The sale of its own brands grew by 3 per cent compared with the previous year.<0} Metsä Tissue will continue to invest in product development and its own product brands and to boost sales based on them. Own brands were strengthened further with the launch of the Lambi Limited Collection premium product concept and the reforms of various product categories. Private label products were also developed and will continue to be developed through innovative campaign products. Risks and uncertainties Since the estimates and statements in this interim report are based on current plans and estimates, they involve risks and uncertainties that may cause the outlook to materially 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. Outlook The development in the finished goods market situation will be monitored by Wood Supply. The demand for log-intensive stands marked for felling and forest energy continues to be good. The difficult market situation in Wood Products Industry is expected to continue at least during the second quarter, and cost adjustments will continue in all operations. On the other hand, economic stimulus activities are expected to boost the activity in the European construction market, and project construction order stock in Wood Products Industry is likely to remain at a good level. The market for wooden consumer products for interior decoration and yard and garden furnishings is expected to develop favourably, and the sale of these products is expected to grow seasonally during the spring and summer. At present, it seems possible that the pulp cycle will turn in the second half of 2009. Producers' inventories are still very high. Production curtailments will be carried out in the mills in Finland during the year if the market situation so requires. During the coming months, demand and delivery volumes of board and paper products seem to remain clearly weaker than during the corresponding period last year. Major production curtailments will be continued, and the current level of product prices is defended by production curtailments. M-real's internal profit improvement programmes, concurrently with declining wood raw material and chemical costs, will ease the challenging profitability situation. The downturn will not have a considerable impact on the demand for tissue and cooking papers. However, growth has slowed down, particularly in emerging markets. It is likely that rapidly decreasing raw materials costs have bottomed out during the first quarter. As the uncertainty continues in the global market situation, Metsäliitto Group will not provide forecasts on the estimated profit development for the time being. Due to the difficult operating environment, the second quarter of the year will be as challenging as the first. However, we will continue to adjust our operations actively to the situation. Espoo, 22 April 2009 Metsäliitto Group Board of Directors For 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 statement of 2009 2008 2008 comprehensive income 1-3 1-3 Change 1-12 Continuing operations Sales 1 278 1 710 -432 6 434 Other operating income 42 59 -17 239 Operating expenses -1 342 -1 587 245 -6 189 Depreciation and impairment losses -116 -98 -18 -482 Operating result -137 84 -221 2 Share of result in associated companies -2 2 -4 6 Exchange gains and losses -2 2 -4 19 Other net financial items -20 -62 42 -260 Result before income tax -163 26 -189 -233 Income tax 19 -7 26 60 Result for the period from continuing -144 19 -163 -172 operations Discontinued operations Result from discontinued operations -10 -19 9 -338 Result for the period -153 0 -153 -511 Other comprehensive income Cash flow hedges -4 -8 4 -55 Available for sale financial assets -66 73 -139 97 Currency translation differences 9 -10 19 13 Other items 2 0 2 -1 Income tax relating to components of other comprehensive income 21 -21 42 -16 Other comprehensive income, net of tax -37 35 -72 39 Total comprehensive income for the period -191 35 -225 -472 Result attributable to: Members of parent company -84 9 -93 -213 Minority interest -69 -9 -60 -297 -153 0 -153 -511 Total comprehensive income attributable to: Members of parent company -98 21 -119 -199 Minority interest -93 14 -106 -272 -191 35 -225 -472 Unaudited Condensed consolidated balance sheet 2009 2008 2008 31.3. 31.3. 31.12. ASSETS Non-current Goodwill 181 321 176 Other intangible assets 100 113 88 Tangible assets 2 888 3 853 2 958 Biological assets 108 77 103 Investments in associated companies 133 136 139 Available for sale investments 430 445 493 Non-current financial assets 234 38 234 Deferred tax receivables 70 44 61 4 145 5 028 4 252 Current Inventories 905 1 175 943 Accounts receivables and other receivables 1 023 1 514 1 085 Cash and cash equivalents 389 323 619 2 317 3 013 2 647 Total assets 6 462 8 041 6 899 MEMBERS' FUNDS AND LIABILITIES Members' funds Members' funds 1 007 1 355 1 104 Minority interest 587 982 682 1 594 2 337 1 786 Non-current liabilities Deferred tax liabilities 292 421 328 Post-employment benefit obligations 125 176 131 Provisions 113 73 111 Borrowings 2 704 3 030 2 854 Other liabilities 23 46 26 3 256 3 746 3 449 Current liabilities Current borrowings 605 733 690 Accounts payable and other liabilities 1 007 1 225 974 1 611 1 958 1 664 Total liabilities 4 868 5 704 5 113 Total members' funds and liabilities 6 462 8 041 6 899 Equity attributable to members of parent company Change in Members' Share Tran- Fair Retain- Total Minor- Total members' capital pre- slation value ed ity funds mium differ- and earn- inte- acc- ences other ings rest EUR mill. ount reser- ves Members' 574 30 -7 148 583 1 328 978 2 306 funds 1.1.2008 Dividends 0 -12 -12 paid Change in 6 6 6 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 0 3 3 combinations Total comprehensive -8 19 10 21 14 35 income for the period Members' 580 30 -15 167 593 1 355 982 2 337 funds 31.3.2008 Members' 585 30 -5 165 329 1 104 682 1 786 funds 1.1.2009 Dividends 0 -1 -1 paid Change in 1 1 1 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 0 -1 -1 combinations Total comprehensive 7 -22 -82 -98 -93 -191 income for the period Members' 585 30 2 143 246 1 007 587 1 594 funds 31.3.2009 Unaudited Condensed consolidated cash flow statement 2009 2008 2008 1-3 1-3 1-12 Result for the period -153 0 -511 Total adjustments 117 152 832 Change in working capital 1 -164 88 Cash flow arising from operations -35 -12 410 Net financial items 44 -51 -239 Income taxes paid -7 -15 -58 Net cash flow arising from operating activities 2 -77 113 Investments in tangible and intangible assets -35 -43 -272 Divestments of assets and other 5 58 511 Net cash flow arising from investing activities -30 14 239 Change in members' funds 1 8 -1 Change in long-term loans and other financial items -204 -37 -101 Dividends paid 0 -12 -55 Net cash flow arising from financing activities -203 -40 -157 Changes in cash and cash equivalents -231 -103 195 Cash and cash equivalents at beginning of period 619 428 428 Translation difference 1 -2 -4 Changes in cash and cash equivalents -231 -103 195 Cash and cash equivalents at end of period 389 323 619 Unaudited BUSINESS SEGMENTS Wood Supply QI/09 QI/08 QI-IV/08 Sales 327 486 1 734 EBITDA 6 12 35 - " -, excl. non-recurring items 6 10 33 Depreciation and impairment -1 -1 -5 Operating result 5 10 30 - " -, excl. non-recurring items 5 9 28 Investments 0 1 4 Personnel at end of period 1 093 1 278 1 140 Wood Products Industry QI/09 QI/08 QI-IV/08 Sales 202 315 1 162 EBITDA -15 9 -18 - " -, excl. non-recurring items -15 9 -11 Depreciation and impairment -10 -11 -57 Operating result -25 -2 -74 - " -, excl. non-recurring items -25 -2 -53 Investments 1 6 36 Personnel at end of period 3 979 4 501 4 199 Pulp Industry QI/09 QI/08 QI-IV/08 Sales 303 398 1 591 EBITDA -29 110 347 - " -, excl. non-recurring items -12 110 347 Depreciation and impairment -93 -34 -138 Operating result -122 75 209 - " -, excl. non-recurring items -47 75 209 Investments 10 23 99 Personnel at end of period 1 767 1 859 1 815 The Metsäliitto Group consolidates 53% of the Pulp Industry (M-real 30% and Metsäliitto Cooperative 23%). Board and Paper Industry QI/09 QI/08 QI-IV/08 Sales 623 859 3 236 EBITDA -48 96 254 - " -, excl. non-recurring items -13 73 192 Depreciation and impairment -70 -59 -315 Operating result -118 37 -61 - " -, excl. non-recurring items -65 14 -35 Investments 16 21 128 Personnel at end of period 6 314 6 866 6 546 Tissue and Cooking Papers QI/09 QI/08 QI-IV/08 Sales 218 230 930 EBITDA 29 25 98 - " -, excl. non-recurring items 29 25 99 Depreciation and impairment -10 -16 -56 Operating result 19 9 42 - " -, excl. non-recurring items 19 9 44 Investments 4 3 33 Personnel at end of period 3 204 3 284 3 222 Other operations QI/09 QI/08 QI-IV/08 Sales 90 91 315 EBITDA 14 10 29 - " -, excl. non-recurring items 14 10 24 Depreciation and impairment -5 -4 -20 Operating result 10 6 9 - " -, excl. non-recurring items 10 6 4 Investments 12 8 48 Personnel at end of period 1 150 1 242 1 204 Other operations include Vapo Group (49,9%) and Metsäliitto's service and holding functions. Internal sales and eliminations QI/09 QI/08 QI-IV/08 Sales -485 -670 -2 534 EBITDA 22 -79 -261 - " -, excl. non-recurring items 9 -78 -259 Depreciation and impairment 73 27 109 Operating result 94 -52 -152 - " -, excl. non-recurring items 36 -51 -150 Metsäliitto Group QI/09 QI/08 QI-IV/08 Sales 1 278 1 710 6 434 EBITDA -22 182 484 - " -, excl. non-recurring items 15 159 425 Depreciation and impairment -116 -98 -482 Operating result -137 84 2 - " -, excl. non-recurring items -67 61 45 Investments 35 43 272 Personnel at end of period 16 146 17 599 16 729 EBITDA = Operating result before depreciation and impairment losses. Unaudited Quarterly data 2009 2008 2008 2008 2008 QI QIV QIII QII QI Sales Wood Supply 327 360 414 474 487 Wood Products Industry 202 239 279 329 315 Pulp Industry 303 359 421 413 398 Board and Paper Industry 623 722 826 829 859 Tissue and Cooking Papers 218 234 235 231 230 Other operations 90 87 60 77 91 Internal sales and eliminations -485 -548 -639 -677 -670 Group sales 1 278 1 453 1 595 1 676 1 710 Operating result Wood Supply 5 4 4 12 10 Wood Products Industry -25 -55 -16 -1 -2 Pulp Industry -122 -13 102 44 75 Board and Paper Industry -117 -161 -8 71 37 Tissue and Cooking Papers 19 10 13 11 9 Other operations 10 -1 3 1 6 Elimineringar 94 10 -78 -32 -52 Group operating result -137 -206 19 105 84 - % of sales -10.7 -14.2 1.2 6.3 4.9 Share of results in associated companies -2 -6 8 2 2 Exchange gains and losses -2 18 0 -2 2 Other net financial items -20 -84 -63 -51 -62 Result before income tax -163 -277 -35 54 26 Income tax 19 66 2 -1 -7 Result for the period from continuing operations -144 -211 -33 53 19 Result from discontinued operations -10 -62 -212 -45 -19 Result for the period -153 -273 -245 8 0 Unaudited Change in tangible assets QI/09 QI/08 QI-IV/08 Book value at beginning of period 2 958 4 021 4 021 Company acquisitions 1 - 4 Investments 31 46 255 Decrease -6 -79 -686 Depreciation and impairment charges -109 -90 -438 - " - , discontinued operations - -19 -149 Translation differences and other changes 13 -27 -49 Book value at end of period 2 888 3 853 2 958 Depreciation and impairment charges of discontinued operations include the Graphic Papers business. Commitments QI/09 QI/08 QIV/08 On own behalf (incl. leasing liabilities) 310 341 318 On behalf of associated companies 4 3 3 On behalf of others 6 2 4 Total 320 346 325 Commitments related to fixed assets QI/09 QI/08 QIV/08 Payments due under 1 year 0 9 0 Payments due in subsequent years 1 1 1 Open derivative contracts QI/09 QI/08 QIV/08 Interest rate derivatives 1 027 1 458 1 158 Currency derivatives 2 055 2 613 2 346 Other derivatives 337 184 232 Total 3 419 4 255 3 735 The market value of open derivative contracts at the end of the review period was EUR -56 million (12/08: EUR 33 million). Open derivative contracts also include closed contracts to a total amount of EUR 496 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 in 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. Taxes include taxes corresponding to the result for the period under review. |
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