2011-11-02 11:00:00 CET
2011-11-02 11:00:10 CET
REGULATED INFORMATION
M-real - Interim report (Q1 and Q3)
M-real's operating result excluding non-recurring items for the January-September 2011 EUR 81 million
M-real Corporation Interim Report 1 January-30 September 2011 2
November 2011 at 12:00 EET
Result for January-September 2011
• Sales were EUR 1,961 million (Q1-Q3/2010: 1,940)
• Operating result excluding non-recurring items EUR 81 million (136).
Operating result including non-recurring items EUR 1 million (150).
• Result before taxes excluding non-recurring items EUR 33 million (72). Result
before taxes including non-recurring items EUR -51 million (70).
• Earnings per share from continuing operations excluding non-recurring items
EUR 0.06 (0.16), and including non-recurring items EUR -0.20 (0.15)
Result for the third quarter of 2011
• Sales EUR 616 million (Q2/2011: 660)
• Operating result excluding non-recurring items EUR 6 million (32). Operating
result including non-recurring items EUR -13 million (-32).
• Result before taxes excluding non-recurring items EUR -11 million (16).
Result before taxes including non-recurring items EUR -29 million (-53).
• Earnings per share from continuing operations excluding non-recurring items
EUR -0.05 (0.04), and including non-recurring items EUR -0.11 (-0.17)
Events during the third quarter of 2011
• Profitability of cartonboard production continued to be good
• Profitability of paper and pulp production weakened
• A new coating unit of the Kemi linerboard machine was commissioned
• Divestment of Hallein pulp mill to Schweighofer Group was completed
Events after the period
• M-real announced to start processes to close the Alizay mill and discontinue
the unprofitable operations at the Gohrsmühle mill.
• M-real announced to continue the Chromolux business and investigate
opportunities to launch a folding boxboard customer service and logistics
centre and a sheeting plant in Gohrsmühle.
• M-real announced in November plans to restructure its coated paper business,
including proposed closure of Äänekoski paper mill and increase of Husum mill's
production
“Profitability of our cartonboard production continued to be strong in the
third quarter. At the same time, the weakening of the paper and pulp market,
our on-going measures at the Alizay mill and in Speciality Papers as well as
the maintenance and investment shutdowns in Kemi and at the Metsä-Botnia mills
weakened our profitability, as expected, in the third quarter.”
“Cartonboard order books have been declining from the record level of early
year 2011. Nevertheless, the demand and profitability outlook of folding
boxboard are strong, and when the inventory levels of customers normalize, the
order inflows are believed to improve rapidly. M-real will increase its folding
boxboard capacity as planned in order to meet the increasing demand.”
“The measures to eliminate losses of Alizay, Specialty Papers and coated paper
operations are progressing. They constitute a significant portion of the
company's strategic transformation into a successful cartonboard company and
will raise M-real's profitability to a new, improved level. Concurrently,
taking full advantage of the potential of our cartonboard machines will further
improve our cost competitiveness and support M-real's profitable growth.”
Mikko Helander, CEO
KEY FIGURES 2011 2011 2011 2010 2011 2010 2010
Q3 Q2 Q1 Q3 Q1-Q3 Q1-Q3 Q1-Q4
------------------------------------------------
Sales, EUR million 616 660 685 662 1 961 1 940 2 605
--------------------------------------------------------------------------------
EBITDA, EUR million 24 48 77 95 149 238 312
excl. non-recurring items, EUR 36 62 74 85 172 234 305
million
EBITDA, % 3.9 7.3 11.2 14.4 7.6 12.3 12.0
excl. non-recurring items, % 5.8 9.4 10.8 12.8 8.8 12.1 11.7
--------------------------------------------------------------------------------
Operating result, EUR million -13 -32 46 66 1 150 146
excl. non-recurring items, EUR 6 32 43 54 81 136 173
million
EBIT, % -2.1 -4.8 6.7 10.0 0.1 7.7 5,6
excl. non-recurring items, % 1.0 4.8 6.3 8.2 4.1 7.0 6.6
--------------------------------------------------------------------------------
Result before taxes
from continuing operations, EUR -29 -53 31 45 -51 70 48
million
excl. non-recurring items, EUR -11 16 28 33 33 72 92
million
--------------------------------------------------------------------------------
Result for the period
from continuing operations, EUR -33 -59 28 38 -64 49 27
million
from discontinued operations, 0 0 0 0 0 0 0
EUR million
------------------------------------------------
Total, EUR million -33 -59 28 38 -64 49 27
--------------------------------------------------------------------------------
Result per share
from continuing operations, EUR -0.11 -0.17 0.08 0.12 -0.20 0.15 0.09
from discontinued operations, 0.00 0.00 0.00 000 0.00 0.00 0.00
EUR
------------------------------------------------
Total, EUR -0.11 -0.17 0.08 0.12 -0.20 0.15 0.09
--------------------------------------------------------------------------------
Result per share
excl. non-recurring items, EUR -0.05 0.04 0.07 0.08 0.06 0.16 0.23
--------------------------------------------------------------------------------
Return on equity, % -14.1 -23.5 10.8 15.5 -8.9 6.8 2.8
excl. non-recurring items, % -6.3 4.2 9.5 10.7 2.7 7.1 7.6
--------------------------------------------------------------------------------
Return on capital employed, % -1.5 -6.1 8.4 11.6 0.4 7.8 5.7
excl. non-recurring items, % 2.0 6.4 7.8 9.6 5.4 8.0 7.6
--------------------------------------------------------------------------------
Equity ratio at end of period, 32.7 33.9 33.6 31.8 32.7 31.8 32.1
%
Gearing ratio at end of period, 128 120 125 135 128 135 135
%
Net gearing ratio at end of 83 84 78 81 83 81 83
period, %
Interest-bearing net 772 809 799 821 772 821 827
liabilities, EUR million
Gross investments, EUR million 17 31 12 31 60 48 66
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper businesses 254 277 301 269 832 858 1 155
Consumer Packaging 307 315 334 353 956 1 046 1 390
--------------------------------------------------------------------------------
Personnel at the end of period
in continuing operations 4,163 4,699 4,515 4,682 4,163 4,682 4,538
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Near-term outlook
No signs of weakness have been observed in the end demand of cartonboard.
Cartonboard delivery volumes were at a record high level in late last year and
early this year. Nevertheless, inventory levels have been clearly reduced in
recent months in different parts of the supply chain as the general economic
situation has become more uncertain and the producers' ability to supply board
has improved. The long-term demand and profitability outlook of cartonboard
continues to be strong. The inventory levels of cartonboard are expected to
start normalize during the coming months.
M-real will increase its folding boxboard capacity as planned despite the
temporarily weaker order book. At the Kyro mill a capacity increase investment
is carried out in November, which will result in a shutdown of the mill for
slightly more than a week. The capacity increase investment at the Äänekoski
mill will be carried out in the spring of 2012.
Folding boxboard annual contract negotiations for 2012 have progressed as
planned, and by the end of October, slightly more than a half of next year's
annual contracts were signed. Depending on the end use segment and market area,
the prices have remained unchanged or increased slightly compared to the 2011
level.
General economic uncertainty has weakened the paper and pulp market situation
in all main markets in recent months. Paper and pulp order books are currently
below the normal level and production curtailments are carried out in most
mills during the remainder of the year. The price of office paper is estimated
to decrease slightly in Europe during the last quarter of the year. Due to the
reduced demand of paper and the maintenance works done at Husum pulp mill,
M-real's pulp deliveries are estimated to decline slightly in the final quarter
of the year. The euro-denominated average pulp price is estimated to decrease
in the coming months.
Cost inflation has clearly accelerated in 2011. However, costs are not expected
to increase further in the last quarter of the year. M-real launched a EUR 70
million profit improvement programme for 2011 in January. The combined positive
impact of M-real's 2011 profit improvement programme and the programmes
launched earlier is estimated to be EUR 90 million in 2011, which is believed
to mainly offset the increased cost inflation.
M-real's operating result, excluding non-recurring items, is in the last
quarter of 2011 expected to be roughly at the same level as in the third
quarter of 2011. Profitability of cartonboard production is expected to
continue strong. The measures under implementation in Alizay mill and in
Speciality Papers business area will stress the paper business' results
operatively also in the last quarter of 2011. Profitability of pulp production
is expected to weaken during the remaining part of this year.
Disclosure procedure
M-real Corporation has started to follow the disclosure procedure enabled by
Standard 5.2b published by the Finnish Financial Supervision Authority and
hereby publishes its interim report January-September 2011 enclosed to this
stock exchange release. M-real's complete interim report January-September 2011
is attached to this release in pdf-format and is also available on the
company's web site at www.m-real.com.
M-REAL CORPORATION
Further information:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10
465 4335
More information available starting from 1 p.m. on 2 November 2011. A
conference call held in English for investors and analysts starts at 3 p.m.
(EET). Conference call participants are requested to dial in and register a few
minutes prior to the start of the conference call on the following numbers:
Europe: +44 (0)20 7162 0025
US: +1 334 323 6201
The conference ID is 891240.
© 2024 Nasdaq, Inc. All Rights Reserved |