2017-02-02 11:01:32 CET
2017-02-02 11:01:32 CET
REGULATED INFORMATION
Metsäliitto Osuuskunta - Financial Statement Release
Metsä Group’s comparable operating result in 2016 was EUR 439 million
Metsä Group 2016 Financial Statements Bulletin 2 February 2017 at 12 noon EET
January–December 2016 (1–12/2015)
-- Sales were EUR 4,658 million (EUR 5,016 million).
-- Operating result was EUR 442 million (542). Comparable operating result was
EUR 439 million (537).
-- Result before taxes was EUR 361 million (468). Comparable result before
taxes was EUR 357 million (466).
-- Comparable return on capital employed was 10.2 per cent (13.6). Comparable
return on capital employed excluding assets under construction related to
strategic investment projects was 11.6 per cent (14.3).
-- Cash flow from operations was EUR 504 million (964).
October–December 2016 (10–12/2015)
-- Sales were EUR 1,175 million (EUR 1,205 million).
-- Operating result was EUR 110 million (128). Comparable operating result was
EUR 107 million (123).
-- Result before taxes was EUR 85 million (113). Comparable result before
taxes was EUR 82 million (108).
-- Comparable return on capital employed was 9.8 per cent (12.3). Comparable
return on capital employed excluding assets under construction related to
strategic investment projects was 11.6 per cent (13.2).
-- Cash flow from operations was EUR 206 million (338).
Events during the fourth quarter of 2016
-- At the end of the year, the bioproduct mill project at Äänekoski was 84 per
cent complete.
-- The average price for orders of the new folding boxboard at Husum, Sweden,
increased and deliveries remained roughly on par with the previous quarter.
-- Metsä Wood divested its glulam business located in Hartola.
-- Metsä Group’s Finnish sawmills were transferred from Metsä Wood to Metsä
Fibre in an internal transaction.
Proposal for interest on members' capital
Metsäliitto Cooperative’s Board of Directors has decided to propose that
interest of 6.0 per cent (6.0 per cent in 2015) be distributed on the
participation shares of the members for 2016. Interest of 5.5 per cent (5.5) is
proposed for additional shares A, and interest of 2.5 per cent (3.0) for
additional shares B.
Result guidance for January–March 2017
Metsä Group’s comparable operating result is in the first quarter of 2017
expected to be roughly at a similar level as in the last quarter of 2016.
President and CEO Kari Jordan:
“Metsä Group’s business operations developed according to expectations in 2016.
Our profit-making ability continued to be good, and the balance sheet strong.
Our profitability in comparison to the previous year was affected by the lower
market price of pulp and the start-up phase of the new folding boxboard machine
at Husum.
Our production capacity is growing. Metsä Group's investments in 2015–2017
amount to approximately two billion euros of which about 85 per cent is
directed to Finland. The construction of the bioproduct mill at Äänekoski is
progressing on schedule and according to budget. At the moment, the focus of
the work is shifting from equipment installations to the testing and
commissioning phase. The folding boxboard machine at Husum, which started up in
early 2016, is operating at a good speed, and the construction work on the
extrusion coating line is progressing according to target. The expansion of
Kerto® LVL mill in Lohja is also progressing according to plan as part of the
Wood Products Industry’s investment programme.
Our starting point for 2017 is stable. We will continue our long-term work for
profitable growth as well as efficiency and productivity improvement in all of
our business areas. Metsä Group's year will culminate in the start-up of the
bioproduct mill in the third quarter.”
Key figures
2016 2015 2016 2015
Condensed income statement, EUR million 1–12 1–12 10–12 10–12
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Sales 4 657.9 5 016.0 1 175.2 1 205.4
Other operating income 70.5 95.7 18.2 16.9
Operating expenses -4 041.8 -4 311.4 -1 030.2 -1 033.8
Depreciation and impairment losses -244.3 -258.2 -53.5 -60.3
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Operating result 442.3 542.1 109.7 128.2
Share of results from associated -1.1 11.2 0.3 2.7
companies and
joint ventures
Exchange gains and losses -5.7 -1.2 -6.5 2.6
Other net financial items -74.9 -83.8 -18.4 -20.1
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Result before income tax 360.6 468.4 85.1 113.4
Income tax -80.7 -112.6 -16.9 -21.4
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Result for the period 279.9 355.7 68.2 92.2
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2016 2015 2016 2015
Profitability 1–12 1–12 10–12 10–12
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Operating result, EUR million 442.3 542.1 109.7 128.2
Comparable operating result 438.6 537.4 106.5 122.7
% of sales 9.4 10.7 9.1 10.2
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Return on capital employed, % 10.2 13.7 10.1 12.9
Comparable return on capital employed 10.2 13.6 9.8 12.3
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Return on equity, % 11.2 15.9 10.7 15.5
Comparable return on equity 11.0 15.8 10.2 14.6
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2016 2015 2016 2015
Financial position 31.12. 31.12. 30.9. 30.9.
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Equity ratio, % 43.9 43.2 44.0 42.7
Net gearing ratio, % 40 25 40 29
Interest-bearing net liabilities, EUR million 1 033 610 991 682
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SEGMENTS
Sales and Wood Supply Wood Pulp Paperboard Tissue and
Operating result and Forest Products and Industry Cooking
1–12/2016, EUR Services Industry Sawn Papers
million Timber
Industr
y
Sales 1 534.4 481.6 1 636.0 1 720.3 990.8
Other operating 7.3 12.2 25.8 40.2 3.5
income
Operating -1 507.4 -440.2 -1 -1 525.9 -893.3
expenses 368.7
Depreciation and -3.4 -13.6 -72.3 -102.3 -39.7
impairment
losses
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Operating result 30.9 40.0 220.8 132.3 61.3
Items affecting - -1.3 -6.2 5.2 1.7
comparability
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Comparable 30.9 38.7 214.6 137.5 63.1
operating result
% of sales 2.0 8.0 13.1 8.0 6.4
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Near-term outlook
Wood demand will be focused on regeneration and thinning sites to be harvested
when the ground is unfrozen and, in terms of energy wood, crown wood.
Market demand for wood products is picking up, improving the order book for all
sheet products in comparison to the previous year. Construction in the UK
market is expected to remain at a good level.
Uncertainty and changes in the currency market will impact Metsä Fibre's
operating environment. The global demand for pulp has continued to increase
slightly, and there are no signs of considerable negative changes in the market
conditions.
In sawn timber, demand in Asia will support the market balance of spruce sawn
timber, but the oversupply in pine sawn timber will continue, particularly due
to the market situation in North Africa.
Demand for premium fresh fibre paperboards is expected to remain good in both
Europe and the Americas. The market prices of folding boxboard and white fresh
fibre linerboard are expected to remain stable.
Metsä Board's paperboard deliveries in January–March 2017 are expected to grow
from the previous quarter. The growth is supported by Husum's new folding
box-board production, marketed primarily to the Americas.
In the tissue and cooking paper markets, demand is expected to remain stable in
all market areas. Demand for tissue paper is expected to increase particularly
in eastern Central Europe, and demand for cooking papers is expected to grow in
Asia.
METSÄ GROUP
For further information, please contact:
Vesa-Pekka Takala, CFO, Metsä Group, tel. +358 10 465 4260
Juha Laine, SVP, Communications, Metsä Group, tel. +358 10 465 4541
Metsä Group will publish its financial reports in 2017 as follows:
4 May 2017: Interim report January–March 2017
3 August 2017: Half year financial report January–June 2017
1 November 2017: Interim report January–September 2017
Metsä Group’s Financial Statements 2016 including the Board of Director’s
report will be published as a pdf-file on Metsä Group's website at
www.metsagroup.com in week 9. The Financial Statements include the financial
statements, the report of the board of directors, the salary and remuneration
report and the corporate governance statement.
www.metsagroup.com
Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood
from sustainably managed northern forests. Metsä Group focuses on wood supply
and forest services, wood products, pulp, fresh fibre paperboards and tissue
and cooking papers.
Metsä Group’s sales totalled EUR 4.7 billion in 2016, and it employs
approximately 9,300 people. The Group operates in some 30 countries.
Metsäliitto Cooperative is the parent company of Metsä Group and owned by
approximately 104,000 Finnish forest owners.
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